$MathMaster logo$

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 equation of a logarithmic function that passes through the points (1, 0) and (10, 2)?

+

Question: Determine the basis of vectors in ℝ^3 formed by the equation 2x + 3y - z = 0.

+

Math question: In a right triangle, the length of one leg is 10 and the length of the hypotenuse is 13. Find the length of the other leg.

+

New questions in Mathematics

3(4×-1)-2(×+3)=7(×-1)+2

If f(x) = 3x 2, what is the value of x so that f(x) = 11?

what is the annual rate on $525 at 0.046% per day for 3 months?

A construction company is working on two projects: house construction and building construction. Each house requires 4 weeks of work and produces a profit of $50,000. Each building requires 8 weeks of work and produces a profit of $100,000. The company has a total of 24 work weeks available. Furthermore, it is known that at least 2 houses and at least 1 building must be built to meet the demand. The company wants to maximize its profits and needs to determine how many houses and buildings it should build to meet demand and maximize profits, given time and demand constraints.

According to a survey in a country 27% of adults do not own a credit card suppose a simple random sample of 800 adults is obtained . Describe the sampling distribution of P hat , the sample proportion of adults who do not own a credit card

solve for x 50x+ 120 (176-x)= 17340

The cost of unleaded gasoline in the Bay Area once followed an unknown distribution with a mean of $4.59 and a standard deviation of $0.10. Sixteen gas stations from the Bay Area are randomly chosen. We are interested in the average cost of gasoline for the 16 gas stations. 84. Find the probability that the average price for 30 gas stations is less than $4.55. a 0.6554 b 0.3446 c 0.0142 d 0.9858 e 0

In the telephone exchange of a certain university, calls come in at a rate of 5 every 2 minutes. Assuming a Poisson distribution, the average number of calls per second is: a) 1/8 b) 1/12 c) 1/10 d) 2/5 e) 1/24

A circular window has a rubber molding around the edge. If the window has a radius of 250 mm, how long is the piece of molding that is required ? (To the nearest mm)

If the regression equation is given by 4x –y + 5 = 0, then the slope of regression line of y on x is

Determine a general formula (or formulas) for the solution to the following equation. Then, determine the specific solutions (if any) on the interval [0,2π). cos30=0

Determine the Linear function whose graph passes through the points (6, -2) and has slope 3.

Mark is gluing a ribbon around the sides of a picture frame. The frame is 11 inches long and 7 includes wide. How much ribbon does Mark need?

x(squared) -8x=0