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Unformatted text preview: variance of Y. (Ans 35 / 4, 1085 / 48) A contestant on a game show selects a ball from an urn containing n balls numbered from 1 to n . The number he selects is the number of true coins he tosses to determine his prize. The variance of the number of heads he obtains is 55/16. If his prize is $1000 times the number of heads he obtains, determine his expected prize. (Ans $2,750) (4) A fund has been established for the purpose of insuring 11,060 lives with identical mortality profiles. For each life, you are given: (i) The probability of an accidental death is 0.01, and the probability of a non-accidental death is 0.09 (ii) If death is accidental, the claim amount is 10. For other causes of death, the claim amount is 1. Calculate the amount needed in the fund so that the probability, using the normal approximation, is 95% that the fund will be sufficient to pay the death claims. (Ans 2279)...
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This note was uploaded on 05/11/2011 for the course STOR 472 taught by Professor Charlesdann during the Spring '11 term at University of North Carolina School of the Arts.
- Spring '11