$MathMaster logo$

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 derivative of tan(sin(x)) + 2x^3 - ln(5x) with respect to x?

+

What is the equation of the graph of y=log(x) shifted 2 units to the left and 3 units up?

+

What is the product of logarithm of 5 to the base 10 and the logarithm of 2 to the base 10?

+

New questions in Mathematics

A normally distributed population has a mean of 118 with a standard deviation of 18. What score separates the lowest 72% of the distribution from the rest of the scores?

What payment 7 months from now would be equivalent in value to a $3,300 payment due 23 months from now? The value of money is 2.7% simple interest. Round your answer to 2 decimal places. Show all work and how you arrive at the answer..

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

The durability of a tire of a certain brand is a Normal random variable with an average of 64,000 km and a standard deviation of 9,000 km. Assuming independence between tires, what is the probability that the 4 tires on a car will last more than 58,000 km?

show step by step simplification: (¬𝑑∨((¬b∧c)∨(b∧¬c)))∧((𝑎 ∧ 𝑏) ∨ (¬𝑎 ∧ ¬𝑏))∧(¬𝑐∨((¬𝑑∧𝑎)∨(𝑑∧¬𝑎)))

John he’s going to the carnival with his friends. He spends $25 on an admission ticket. He buys 10 games at X dollars each and two boxes of popcorn at Y dollars each. Write an expression to show the total cost of admission game, tickets and popcorn.

The two sides of the triangle are 12 cm and 5 cm, and the angle between the sides is 60°. Cover the area of the triangle!

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?

Two particles of electrical charges Q1=3.8×10-⁶C and q,=4.4×10-⁶C are separated in vacuum by a distance of 4.0.10-⁸ m. Since K=9.0.10⁹ N.m²/C², the intensity of the interaction force between them, in newtons, is?

48 kg of 30% sulfuric acid in a mixture of 10% and 40% sulfuric acid arose. How many kilograms were each of the original solutions?

A 20,000 kg school bus is moving at 30 km per hour on a straight road. At that moment, it applies the brakes until it comes to a complete stop after 15 seconds. Calculate the acceleration and the force acting on the body.

What is the total amount due and the amount of interest on a 3-year loan of $1,000 at a simple interest rate of 12% per year?

If sin A=0.3 and cos A=0.6, determine the value of tan A.

9n + 7(-8 + 4k) use k=2 and n=3

12[4 + (8 + 7) + 5]

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?