Math 1330 Chapter 6 Homework Assignment RANDOM VARIABLES 4. Problem 58, page 259
ID: 2931504 • Letter: M
Question
Math 1330 Chapter 6 Homework Assignment RANDOM VARIABLES 4. Problem 58, page 259: Insurance: An insurance company sells a one-year term life insurance policy to a 80-year-old woman. The woman pays a premium of $1000. If she dies within one year, the company will pay $20,000 to her beneficiary. According to the CDC, the probability that an 80-year-old woman will be alive one year later is 0.9516. Find the profit made by the insurance company under this one year period. 5, problem 30, page 269: Car Inspections: Of all the registered automobiles in Colorado, 8% fail the state emissions test. Twelve automobiles are selected in Colorado at random to undergo an emissions test. a. Find the probability that exactly 3 of them fail the test: PX 3) b. Find the probability that fewer than 3 of them failed the test: P(X 2) d. Would it be unusual for none of them to fail the test? P( X = 0)Explanation / Answer
As per the Chegg policy, we are advised to do one question at a time so i am attempting the 4th.
4. The probability distribution table for this will be:
Hence,
Profit made by insurance company
= Expected gain
= 1000(0.9516) - 19000(0.0484)
= $32
x 1000 1000 - 20000 = -19000 p(x) 0.9516 1 - 0.9516 = 0.0484