There is a 0.9968 probability that a randomly selected 50 year old female lives through the year (based on data from the US department of Health and Human Services). A Fidelity life insurance company charges $226 for insuring that the female will live through the year. If she does not survive the year, the policy pays out $50,000 as a death benefit.

There is a 0.9968 probability that a randomly selected 50-year-old female lives through the year (based on data from the U.S. Department of Health and Human Services).

A Fidelity life insurance company charges $226 for insuring that the female will live through the year. If she does not survive the year, the policy pays out $50,000 as a death benefit.

From the perspective of the 50-year-old female, what are the values corresponding to the two events of surviving the year and not surviving?

Ans: -226 ; 50,000-226 = 49774

If a 50-year-old female purchases the policy, what is her expected value?

WORK TRIED:

In the event she lives, the value is -$226. In the event she dies, the value is $49,774.

E(x) = 0.9968*(-226) + 0.0032(49774) = -$66

Cheers,

ROR

3. (5x + 1) - (-10x + 6)

simplify the answer choice. combine like terms. remember to distribute the negative to the terms inside the second parenthesis. also remember that two negatives = one positive, and one of each sign = negative.

- (-10x + 6) = + 10x - 6

simplify. combine like terms:

5x + 1 + 10x - 6

5x + 10x + 1 - 6

15x - 5

∴ it is your answer

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