Do Homework Abrar Alabdulwahed Internet Explorer httpswwwmat

Do Homework Abrar Alabdulwahed Internet Explorer https//wwwmathol.com/Student PlayerHomework.aspx?homeworklda 266339231&questionlde; 158fushed: Abrar Alabdulwahed 3/4/15 8.4s omework: HW 6.1 core: 0.5 of 1 pt 15 of 19 (19 complete) HW scores as 17s, 16 of 1s 6.1.27 suppose a insurence company sells a S150,000 one-year termite insurance poley to a 21 yeareld Mmele for s220. The probability the female survives the year is Ree4B2 Compute and interpret the copeoted value of this poicy totheinsurance Dompany The expected value is D4071070 (Round to two decimel plaees as needed.) Enter your answer in the answer be then Check Answer I Pa Pa Los

Solution

Prob of survival = 0.999492

Expected value of policy= np

= 220(0.999492)-150000(0,000508)

=219.888-76.2

= 143.688