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Add AaBbCcDc ABC ABCD Meedingt Normal Strong 25. Jim Bob's Life Insurance Company decides to offer 1-year life insurance policies to people under 45 for

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Add AaBbCcDc ABC ABCD Meedingt Normal Strong 25. Jim Bob's Life Insurance Company decides to offer 1-year life insurance policies to people under 45 for Covid-19. A policy costs $25 and pays out $100,000 in the case of death by Covid-19. According to recent news reports, the probability of someone under 45 dying from the Covid-19 virus is .0018 %. (I believe these statistics actually grossly exaggerate the number of "young" deaths expected. This is a percent, so for the probability you will need to move the decimal two more places to .000018!!) (10 points) a) Create an event space for the revenue and expenses of Jim Bob's Life Insurance Company. Consider gains and losses from the insurance company's point of view. I b) What is the expected value for a policy sold by Jim Bob's Life Insurance? c) Jim Bob expects to sell 1,000,000 policies. How much money can he expect to gain? Miodra English (US) MacBooK 30 3 $ 4 08 N 6 7 O * 8 9 V E R T Y U P. ta D F G J Add AaBbCcDc ABC ABCD Meedingt Normal Strong 25. Jim Bob's Life Insurance Company decides to offer 1-year life insurance policies to people under 45 for Covid-19. A policy costs $25 and pays out $100,000 in the case of death by Covid-19. According to recent news reports, the probability of someone under 45 dying from the Covid-19 virus is .0018 %. (I believe these statistics actually grossly exaggerate the number of "young" deaths expected. This is a percent, so for the probability you will need to move the decimal two more places to .000018!!) (10 points) a) Create an event space for the revenue and expenses of Jim Bob's Life Insurance Company. Consider gains and losses from the insurance company's point of view. I b) What is the expected value for a policy sold by Jim Bob's Life Insurance? c) Jim Bob expects to sell 1,000,000 policies. How much money can he expect to gain? Miodra English (US) MacBooK 30 3 $ 4 08 N 6 7 O * 8 9 V E R T Y U P. ta D F G J

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