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# A 25 year old can purchase a one-year life insurance policy for $10,000 at a cost of$100. Past ...

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A year ago

Question 1.

An architect is considering bidding for the design of a new shopping mall.  The cost of drawing plans and submitting a model is $10,000. The probability of being awarded the bid is 0.12, and anticipated profits are$100,000, resulting in a possible gain of this amount minus the $10,000 cost for plans and a model. What is the expected value in this situation? ▸$12,000

▸ $10,800$2000

▸ $11,000 Question 2. A 25 year old can purchase a one-year life insurance policy for$10,000 at a cost of \$100.  Past history indicates that the probability of a person dying at age 25 is 0.0015.  Determine the company's expected gain per policy.

▸ 85

▸ 15

▸ 985

▸ 115
Textbook

## Thinking Mathematically

Edition: 6th
Author:
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rinderbikrinderbik
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A year ago

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