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.

Name: Solved: 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. - MathMaster
Brand: MathMaster
Rating: 4.9 (162 reviews)

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.

$Expert avatar$

Murray

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)

Calculate the resultant vector when vector A (magnitude: 10, direction: 30° north of east) and vector B (magnitude: 5, direction: 45° west of south) are added.

Math question: Compute the third order derivative of f(x) = 3x^4 - 2x^3 + 5x^2 - 7x + 1.

Question: Convert 3 miles to kilometers.

New questions in Mathematics

Y=-x^2-8x-15 X=-7

The gross domestic product the gdp for the United States in 2017 was approximately $2.05x10^3. If you wrote this number in standard notation , it would be 205 followed by how many zeros

-8+3/5

Karina has a plot of 5,000 square meters in which she has decided that 60% of it will be used to plant vegetables. Of this part, 12% will be dedicated to planting lettuce. How much surface area of the plot will be used for cultivation?

4x567

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

3(2•1+3)4

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

There are 162 students enrolled in the basic mathematics course. If the number of women is 8 times the number of men, how many women are there in the basic mathematics course?