$MathMaster logo$

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)

Math question: What is the sum of factors of 36?

+

What is the equation of the logarithmic function that passes through (-1,3) and has a vertical asymptote at x=2?

+

What is the number of ways to arrange 6 books on a shelf if 2 specific books must always be together?

+

New questions in Mathematics

A car tire can rotate at a frequency of 3000 revolutions per minute. Given that a typical tire radius is 0.5 m, what is the centripetal acceleration of the tire?

(x^2+3x)/(x^2-9)=

What is the coefficient of elasticity of the material that must be placed on the heel of the 10 cm high clog, with a base area of 2 cm² so that it deforms only 2 cm when the force on it will be a maximum of 600 N.

what is 9% of 307

solve the following trigo equation for 0°<= x <= 360°. sec x =-2

All the liquid contained in a barrel is distributed into 96 equal glasses up to its maximum capacity. We want to pour the same amount of liquid from another barrel identical to the previous one into glasses identical to those used, but only up to 3/4 of its capacity. How many more glasses will be needed for this?

(5u + 6)-(3u+2)=

Identify a pattern in the list of numbers.Then use this pattern to find the next number. 37,31,25,19,13

is the x element (180,270), if tanx-3cotx=2, sinx ?

2x2 and how much?

-3(-4x+5)=-6(7x-8)+9-10x

A study reports the following final notation: F (3, 32) = 9.50, p < .05. How many total participants were involved in this study? Group of answer choices 34 32 36

I want you to solve this problem as a grade sixth pupil in primary school: 8 Pigs ate 6 bags of fee in 20 days. How long will it take 10 pigs to eat 15 bags of feed eating at the same rate?

The price per night of a suite at the Baglioni Hotel in Venice is 1896 euros, VAT included. The VAT in Italy is 25%. The hotel gets a return of 10% out of the price VAT included. b) What is the profit value made by the hotel for one

The probability of growing a seedling from a seed is 0.62. How many seeds do I need to plant so that the probability of growing at least one seedling is greater than or equal to 0.87?

Find the vertex F(x)=x^2-10x

Find I (Intrest) using simple interest formula of 17700 @ 15% for 4 years