Q1. An insurance company sells a $1,500, two-year term life insurance policy to an individual for $245. Find the expected return for the company if the probability the individual will live for the next two years is 0.97.

(Round your answer to the nearest cent.)

Q2. A lottery has a grand prize of $380,000, two runner-up prizes of $38,000 each, six third-place prizes of $19000 each, and twenty-two consolation prizes of $1900 each. If 1,140,000 tickets are sold for $1 each and the probability of any one ticket winning is the same as that of any other ticket winning, find the expected return on a $1 ticket.

(Round your answer to two decimal places.)

Q3. A fair 20-sided die is tossed. If X denotes the random variable giving the number on the bottom face of the die,

find E(X) =