QUESTION #1

A company estimates that 0.2% of their products will fail after the original warranty period but within 2 years of the purchase, with a replacement cost of $250. If they offer a 2 year extended warranty for $18, what is the company's expected value of each warranty sold?

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QUESTION #2

A company estimates that 0.4% of their products will fail after the original warranty period but within 2 years of the purchase, with a replacement cost of $300. If they offer a 2 year extended warranty for $25, what is the company's expected value of each warranty sold?

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QUESTION #3

Based on historical data, an insurance company estimates that a particular customer has a 3.6% likelihood of having an accident in the next year, with the average insurance payout being $2400. If the company charges this customer an annual premium of $270, what is the company's expected value of this insurance policy?

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QUESTION #4

A 40-year-old man in the U.S. has a 0.249% risk of dying during the next year . An insurance company charges $260 per year for a life-insurance policy that pays a $100,000 death benefit. What is the expected value for the insurance company? Round your answer to the nearest dollar. Expected Value: $ __________for the year

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QUESTION #5

X	P(X)
-7	0.4
8	0.6

Find the expected value of the above random variable.

Hint:E(x)=x1P(x1)+x2P(x2)+x3P(x3)+...E(x)=x1P(x1)+x2P(x2)+x3P(x3)+... __________

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QUESTION #6

Probability	Scores
0.3	1
0.1	2
0.2	3
0.05	7
0.1	8
0.25	13

Find the expected value of the above random variable. Hint:E(x)=x1P(x1)+x2P(x2)+x3P(x3)+...E(x)=x1P(x1)+x2P(x2)+x3P(x3)+...________

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QUESTION #7

Probability	Scores
0.25	2
0.15	6
0.1	9
0.15	10
0.35	12

Find the expected value of the above random variable.

Hint:E(x)=x1P(x1)+x2P(x2)+x3P(x3)+...

thank you please try to number so I understand where each question is.