QUESTION THREE You are concerned about the possibility of experiencing on Coronavirus (COVID-19) during the next year....

70.2K

Verified Solution

Question

Statistics

QUESTION THREE
You are concerned about the possibility of experiencing onCoronavirus (COVID-19) during the next year. The probability of aCOVID-19 outbreak is 0.5%. Your local insurer offers to pay youK300, 000 if a registered member of your family contractedCOVID-19. The insurance policy costs K1, 500.00. If the inflationrate is forecast to be 10% during the next year, is the price ofinsurance policy fair.Â Â Â
A coin is biased so that it has a 60% chance of landing onheads. If it is thrown three times, find the probability ofgetting
ThreeheadsÂ Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â
2 heads and atailÂ Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â
At least oneheadÂ Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â

Answer & Explanation Solved by verified expert

4.2 Ratings (633 Votes)

Question 3AThe probability of you experiencing COVID19 is 05 which is0005So the probability of you not experiencing COVID19 1 0005 0995Now we calculate the expected value of the insurance for youThe value for the You column is Benefits CostIf you experience COVID19 then the effective value for you 300000 1500 298500You are getting a beneft of 300000 and you are paying 1500 sothe effective value for you 300000 1500 298500If See Answer

Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:

Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!

Become a Member

QUESTION THREE You are concerned about the possibility of experiencing on Coronavirus (COVID-19) during the next year....

70.2K

Verified Solution

Question

Statistics

Answer & Explanation Solved by verified expert

Get Answers to Unlimited Questions

Membership Benefits:

Other questions asked by students

COFEAINEREN SERENE ORENS E ALLEN 68 The focal length of a convex lens is 10...

A planet having surface temperature T has solar constant S An angle 0 is subtended...

Consider a water tank as shown in the figure It s cross sectional area is...

Find the measure of angle z in degrees Round to two decimal places as necessary...

Solve 7p 5q 19p 12 for p Select one O a 5q 12 12 O...

Hull Manufacturing Corp. (HMC), a Canadian company, manufactures instruments used to measure the moisture content...

If the cost of goods sold is $100,000, sales are $200,000, merchandise purchases are $38,000,...

The following equations describe a certain economy C=400+0.75Yd I=200-100r T=70+0.2Y G=100 x=10 M=150+0.06Y Ms=4000 Md=0.2Y-10r...

Shimmer Incorporated is a calendar-year-end, accrual-method corporation. This year, it sells the following long-term assets:...

Crane Supply Company wants to set up a division that provides copy and fax services...

Exercise 16-17 (Algo) Weighted average: Production cost report LO P2 Oslo Company produces large quantities...

Your boss would like to save as much money as she can for retirement, but...