Question about emv, ABC insurance sells term life insurance

Question about emv

Assignment Help Basic Statistics

Reference no: EM1399039

ABC insurance sells term life insurance policies. If the plicy holder dies during the term of the policy ABC pays out $100000. If the person does not die ABC pays nothing and there is no further value to the policy. ABC has determined through actuarial tables that an individual with certain issues has a 0.001 chance that they will die during the next year and a 0.999 chance that they will live and the company will pay nothing. The cost of this policy is $200 per year. Based on the EMV criterion should the individual buy this policy? How would utility theory help explain why a person would buy this policy?

Reference no: EM1399039

Questions Cloud

Draw the response of a touch-sensitive spinal neuron : Draw the response of a touch-sensitive spinal neuron to changes in three stimuli (gentle, medium, and intense), all of which exceed enough of a stimuli to send the voltage of the cell beyond the threshold for the production of an action potential...

Street performer approaches to make a bet : A street performer approaches you to make a bet. He shows you three cards: one that is blue on both sides, one that is orange on both sides, and one that is blue on one side and orange on the other.

Explain medical dictionary or aerospace for career : Locate three specializes reference sources(for instance, a medical dictionary or aerospace encyclopedia) relating to future career filed( any kind of engraving, wood working, or electronics repair) or topic of interest.

Analyze future trends relative to the field of t & d : Go online and research the future trends relative to the field of T & D. Consider researching professional organizations such as SHRM or ASTD.

Question about emv : ABC insurance sells term life insurance policies. If the plicy holder dies during the term of the policy ABC pays out $100000. If the person does not die ABC pays nothing and there is no further value to the policy.

Estimating random variable : What is the probability that it will crash at least two times in a given semester? What is the probability that it will not crash at all in a given semester?

Explain why cutting an arterial vessel will cause : Explain why cutting an arterial vessel will cause a greater loss of blood over the same amount of time than cutting a venous vessel.

Identifying the organization mission, values and goals : Let's also take a look at some examples of organizations and their training programs. Take some time to research a few organizations of your choice on the Web.

Research way company is organized-business philosophy : Research way company is organized, its business philosophy, and its niche in marketplace. Write down report which would be helpful to other students who might be interested in seeking employment there.

User Account

All Pages