1.Based on historical data, an insurance company estimates that a particular customer has a 2.1% likelihood of having an accident in the next year, with the average insurance payout being $3300.

If the company charges this customer an annual premium of $240, what is the company's expected value of this insurance policy?

$

2.You really struggle remembering to bring your lunch to work. Each day seems to be independent as to whether you remember to bring your lunch or not. The chance that you forget your lunch each day is 31.1%.

Consider the next 46 days. LetX be the number of days that you forget your lunch out of the 46 days. Calculate the following:

X:

X:

P(X=14):

P(X<16):

P(X>10):

P(13X16):

3.Air-USA has a policy of booking as many as 23 persons on an airplane that can seat only 20. (Past studies have revealed that only 88% of the booked passengers actually arrive for the flight.)

Find the probability that if Air-USA books 23 persons, not enough seats will be available. Round your answer to 4 decimal places.

prob =

Is this probability low enough so that overbooking is not a real concern for passengers if you define unusual as 5% or less?

• Since the probability is below 5%, this should not be a concern
• Since the probability is above 5%, this should be a concern

4.The results of a common standardized test used in psychology research is designed so that the population mean is 100 and the standard deviation is 20. A subject earns a score of 36. What is thez-score for this raw score?

z-score =

5.If n=13,x=42, and s=7, find the MARGIN OF ERROR at a 99% confidence level

Give your answer to two decimal places.