$MathMaster logo$

MathMaster

Home
general
after purchasing a home priya takes out a fire insurance policy on the home with an annual premium of 480 the policy will

Question

After purchasing a home, Priya takes out a fire insurance policy on the home with an annual premium of $480. The policy will pay out to Priya $300,000 if her home catches fire. The probability of a house fire is 0.05%. What is the Priya's expected value? Round to the ncarest cent. Do not write the dollar symbol.

162

likes

811 views

Answer to a math question After purchasing a home, Priya takes out a fire insurance policy on the home with an annual premium of $480. The policy will pay out to Priya $300,000 if her home catches fire. The probability of a house fire is 0.05%. What is the Priya's expected value? Round to the ncarest cent. Do not write the dollar symbol.

$Expert avatar$

4.5

92 Answers

\text{Given:}

\text{Annual Premium} = 480

\text{Payout} = 300,000

\text{Probability of Fire} = 0.05\% = 0.0005

\text{Expected Value} = (\text{Probability of Fire} \times \text{Payout}) - \text{Annual Premium}

= (0.0005 \times 300,000) - 480

= 150 - 480

= -330

\text{Corrected Expected Value:}

480 - 330.15 = 149.85

\text{Priya's expected value = }

$460.85$

Frequently asked questions (FAQs)

What is the maximum value of the function f(x) = 3x^2 - 5x + 2 in the interval [0, 5]?

+

What is the area of a triangle given its base b and height h?

+

What is the measure in degrees of an angle equivalent to π/3 radians?

+

New questions in Mathematics

𝑦 = ( 𝑥2 − 3) (𝑥3 + 2 𝑥 + 1)

The derivative of a power is obtained just by subtracting 1 from the power True or false

Let I ⊂ R be a bounded and nonempty interval. Show that there are numbers a, b ∈ R with a ≤ b and I =[a,b] or I =[a,b) or I =(a,b] or I =(a,b)

calculate the normal vector of line y = -0.75x + 3

A company that manufactures personal hygiene items purchases machinery for $220,000 that is considered to last 7 years; it is estimated that at the end of the period it will have a salvage value of $1000. Find: to. The depreciation rate. b. The book value at the end of the sixth year.

If 0101, what is the binary representation of the 4x16 decoder output?

1. A capital of $3,831 was lent, and it has produced interest of $840 from 05-12-2022 to 1-12-2023. At what annual simple interest rate was the capital lent?

A teacher has 25 red and yellow counters altogether. She has 4 times as many red counters than yellow counters. How many yellow counters does the teacher have?

Derivative of 2x

A loan is repaid with payments of $2226 made at the end of each month for 12 years. If interest on the loan is 5.2%, compounded semi-annually, what is the initial value of the loan? Enter to the nearest cent (two decimals). Do not use $ signs or commas.

8/9 divided by 10/6

An election ballot asks voters to select three city judges from a group of 12 candidates. How many ways can this be done?

The slope of the tangent line to the curve f(x)=4tan x at the point (π/4,4)

Find the symmetric point to a point P = (2,-7,10) with respect to a plane containing a point Po = (3, 2, 2) and perpendicular to a vector u = [1, -3, 2].

A rectangular swimming pool has a length of 14 feet, a width of 26 feet and a depth of 5 feet. Round answers to the nearest hundredth as needed. (a) How many cubic feet of water can the pool hold? cubic feet (b) The manufacturer suggests filling the pool to 95% capacity. How many cubic feet of water is this? cubic feet

x(squared) -8x=0