G - Applications of Expected Values - An insurance company sells a $20,000 whole life insurance policy for an annual premium of $300 Actuarial tables

G - Applications of Expected Values - An insurance company...

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An insurance company sells a $20,000 whole life insurance policy for an annual premium of$300. Actuarial tables show that a person who would be sold such a policy with this premium hasa 0.001 probability of death during a year. Let x be a random variable representing the insurancecompany’s profit made on one of these policies during a year. Calculate the expected profit per year.
Belk Department Store is having a special sale this weekend. Customers charging pur-chases of more than $50 to their Belk credit card will be given a special Belk Lotterycard. The customer will scratch off the card, which will indicate the amount to be takenoff the total amount of the purchase. Listed below are the amount of the prize and the per-cent of the time that amount will be deducted from the total amount of the purchase.What is the mean amount (expected value) deducted from the total purchase amount? Prize Amount Probability $10 0.50 $25 0.40 $50 0.08 $100 0.02 Expected Value $21.00
The chance of winning a lottery game is 1 in approximately 28 million. Suppose you buy $1 lottery ticketin anticipation of winning the $6 million grand prize. Calculate your expected net winnings for this single ticket.Interpret the result. EventPrize (x)P(x)Win$6,000,0003.571E-009Loss-$10.9999999964 InterpretationYour average lossfor a large number of games would be0.78per game.(Choose one)value
Lane Run Make Model Color Miles MMR Book 11 4 acura tl silver 122 3 13 honda accord silver 89 3 14 honda accord silver 90 12 16 honda accord white 64 2 9 lexus rx red 98 1 10 lexus rx blue 57 10 2 nissan altima black 14 13 12 5 nissan altima white 111 11 3 12 nissan altima blue 90 10 17 nissan altima black 34 12 1 toyota camry blue 12 12 12 3 toyota camry white 123 11 6 toyota corolla black 155 2 7 toyota corolla red 87 1 11 toyota corolla red 48 12 15 toyota camry white 70 Total

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