Courses-Blackboard Leam × @ Do Homework. Tyler Fisher Stephen A. and Max debate:

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Courses-Blackboard Leam × @ Do Homework. Tyler Fisher Stephen A. and Max debate: Simplifying Fractions Calculato X C Statistics and Probability questi X + https://www.mathd.com/Studen px2homeworkld 467289390&questionld-1;&flushed-false;&cld.; 1 MATHS 125-038 TR 5-6:15pm (Spring 2018) Tyler Fisher 3/19/18 1:30 PM Homework: 11.8-Expected Value Score: 0 of 1 pt 11.8.7 It is estimated that there are 33 deaths for every 10 million people who use airplanes. A company that sells fight insurance provides $100,000 in case of death in a plane crash. A policy can be purchased for $1. Calculate the Save 3 f 7 (1 complete)> HW Score: 14.29%, 1 of 7 pts Question Help expected value and thereby determine how much the insurance company can make over the long run for each policy that it sells. The expected value is SL (Round to the nearest cent) Enter your answer in the answer box and then click Check Answer Clear All Check Answer javascript:doExercise3) 1:30 PM O Type here to search

Explanation / Answer

P(Probability of a death) = 33/10,000,000

The insurance company get $1 from each person who buys the policy and gives $100,000 to a person who dies

Therefore Expected Value = 1 - [33 * 100,000/10,000,000] = 1 - 0.33 = $0.67 = 67 cents

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