User Account

All Pages

Find the insurance company expected profit per policyholder

Assignment Help Basic Statistics
Reference no: EM13916941

A health insurance company charges policyholders a $1250 annual premium for health insurance for hospitalization. The company estimates that each time a patient is hospitalized costs the company $2500. Furthermore, they have estimated that 85% of patients will not be hospitalized, 10% will be hospitalized once a year, and no one will be hospitalized more than twice.

(a) Find the insurance company's expected profit per policyholder.

(b) What is the expected profit if they enroll 80,000 policyholders?

Reference no: EM13916941

Questions Cloud

What proportion of students in the course would pass : The final score in a statistics course follows a normal distribution with mean 68 and standard deviation 12. What proportion of students in the course would pass if they need at least 50 to pass in the course
Include a description of who prepares these sales reports : Include an analysis of the various sales management tools such as quotas, targets, call reports, and sales reports, used in your selected organization.
Managerial report for phoenix computers : The main objective of Phoenix is the satisfaction of its staffing needs at minimum possible total cost viz. incremental training and salary cost during the period of 5 months starting from May and ending at September. Thus it is required to determine..
What the audit would involve : Ron and Jessica (husband and wife) have been running their business as a partnership formore than twenty years. Both of them are near retirement age but they feel so attached with theirbusiness that they would not like to sell it
Find the insurance company expected profit per policyholder : A health insurance company charges policyholders a $1250 annual premium for health insurance for hospitalization. Find the insurance company's expected profit per policyholder
Intensive to manufacture than the cedar shingles : As the controller of ABC Company, the CEO has come to you with a new opportunity that he's been working on. The CEO would like to use the some of the shingle scrap materials to build cedar dollhouses. While this new product line would add additional ..
Reconcile their records : Bank customers should reconcile their records frequently
Watch the video hershey chocolate making process : Watch the video Hershey's Chocolate Making Process. Pay particular attention to the process steps of milling and pressing, mixing the ingredients, and refining.
Find the probability of bills : The Federal Reserve reports that the mean lifespan of a five dollar bill is 4.9 years. Find the probability that a random sample of 35 bills has a mean length of more than 5.5 years

Reviews

Write a Review

Basic Statistics Questions & Answers

  As their sample size increases whats the expected shape of

1. for a sample of 36 houses what would you expect the distribution of the sale prices to be? a real-estate agent has

  Mean and standard deviation for number of erroneous returns

Determine mean and standard deviation for number of erroneous returns per batch.

  Suppose you have a sample of 6 observations from a normal

suppose you have a sample of 6 observations from a normal population. the sample variance is equal to 4. find a 90

  State the formula for the test statistic

State the formula for the test statistic and show your decision rule using the 1 percent level of significance. (c) Carry out the test. Show your work. (d) What assumptions are required?

  If we assume the proportion does not change what should be

many customers complain because the declared lifetime of the light bulb you produce is 1000 hours while they seem to

  Managers at the dew drop inn are concerned about

Managers at the Dew Drop Inn are concerned about the increasing number of guests who make reservations but fail to show up. They have decided to institute a policy of over-booking like larger hotel chains

  Commercial tax preparation site

Suppose the download times for a commercial tax preparation site are normally distributed with a mean download time of 2.0 seconds and a standard deviation of 0.5 second.

  Probability of being a big winner

The Sorry State Lottery requires you to select five different numbers from 0 through 59. (Order is not important.) You are a Big Winner if the five numbers you select agree with those in the drawing, and you are a Small-Fry Winner if four of your ..

  Compare the discoloration in the control group to the

researchers from the dept. of fruit crops at a university compared four different preservatives to be used in freezing

  What percentage of this population

for a particular age group of adult males, the distribution of cholesterol readings, in mg/dl, is normally distributed with a mean of 210 and a standard deviation of 15. What percentage of this population would have readings exceeding 250?

  Determine the 95 confidence interval for the population

question 1 a researcher hypothesizes that individuals who listen to classical music will score differently from the

  Probability that at least one of five not have rh blood

Five persons donate blood at the clinic on a particular day. Find the probability that at least one of the five does not have Rh+ blood.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd