Mixing
What does this probability exercise imply?
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i've been studying probability from George C. Canavos' Applied Probability and Statistical Methods, preparing for the course i'll start next month. I've reached an exercise from the third chapter(random variables and probability distributions) that i can't comprehend what does it want me to do. It's the next one:
3.8. An insurance company must determine the annual fee to collect from a $50 thousands insurance for men between the age of 30 and 35 years. According to research, the annual number of deaths of this age group is 5 per each 1000 men. If X is the random variable representing the company's profits, determine the amount of the annual fee so the company won't suffer losses, even though the great number of said insurances.
I must say i'm at a loss here, the entire chapter and the other exercises didn't represent as much of a struggle as this one. I understand it's fairly easily solved so i wouldn't really be seeking its actual solution rather than the right way it must be interpreted. Thanks beforehand for anyone who can help me.
probability
asked Jan 16 at 14:27
Mauro RodriguezMauro Rodriguez
32
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add a comment |
$begingroup$
i've been studying probability from George C. Canavos' Applied Probability and Statistical Methods, preparing for the course i'll start next month. I've reached an exercise from the third chapter(random variables and probability distributions) that i can't comprehend what does it want me to do. It's the next one:
3.8. An insurance company must determine the annual fee to collect from a $50 thousands insurance for men between the age of 30 and 35 years. According to research, the annual number of deaths of this age group is 5 per each 1000 men. If X is the random variable representing the company's profits, determine the amount of the annual fee so the company won't suffer losses, even though the great number of said insurances.
I must say i'm at a loss here, the entire chapter and the other exercises didn't represent as much of a struggle as this one. I understand it's fairly easily solved so i wouldn't really be seeking its actual solution rather than the right way it must be interpreted. Thanks beforehand for anyone who can help me.
probability
asked Jan 16 at 14:27
Mauro RodriguezMauro Rodriguez
32
$endgroup$
add a comment |
$begingroup$
i've been studying probability from George C. Canavos' Applied Probability and Statistical Methods, preparing for the course i'll start next month. I've reached an exercise from the third chapter(random variables and probability distributions) that i can't comprehend what does it want me to do. It's the next one:
3.8. An insurance company must determine the annual fee to collect from a $50 thousands insurance for men between the age of 30 and 35 years. According to research, the annual number of deaths of this age group is 5 per each 1000 men. If X is the random variable representing the company's profits, determine the amount of the annual fee so the company won't suffer losses, even though the great number of said insurances.
I must say i'm at a loss here, the entire chapter and the other exercises didn't represent as much of a struggle as this one. I understand it's fairly easily solved so i wouldn't really be seeking its actual solution rather than the right way it must be interpreted. Thanks beforehand for anyone who can help me.
probability
asked Jan 16 at 14:27
Mauro RodriguezMauro Rodriguez
32
$endgroup$
i've been studying probability from George C. Canavos' Applied Probability and Statistical Methods, preparing for the course i'll start next month. I've reached an exercise from the third chapter(random variables and probability distributions) that i can't comprehend what does it want me to do. It's the next one:
3.8. An insurance company must determine the annual fee to collect from a $50 thousands insurance for men between the age of 30 and 35 years. According to research, the annual number of deaths of this age group is 5 per each 1000 men. If X is the random variable representing the company's profits, determine the amount of the annual fee so the company won't suffer losses, even though the great number of said insurances.
I must say i'm at a loss here, the entire chapter and the other exercises didn't represent as much of a struggle as this one. I understand it's fairly easily solved so i wouldn't really be seeking its actual solution rather than the right way it must be interpreted. Thanks beforehand for anyone who can help me.
probability
probability
asked Jan 16 at 14:27
Mauro RodriguezMauro Rodriguez
32
asked Jan 16 at 14:27
Mauro RodriguezMauro Rodriguez
32
asked Jan 16 at 14:27
Mauro RodriguezMauro Rodriguez
32
asked Jan 16 at 14:27
Mauro RodriguezMauro Rodriguez
32
asked Jan 16 at 14:27
Mauro RodriguezMauro Rodriguez
32
32
add a comment |
add a comment |
1 Answer
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You are told that, out of a 1000 people, on average, 5 will die within the year. Your company will have to pay out $50,000*5= $250,000. Your company will need to charge each of the 1000 people $250,000/1000=$250 per year to cover that.
answered Jan 16 at 14:32
user247327user247327
11.1k1515
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1 Answer
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1 Answer
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active
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$begingroup$
You are told that, out of a 1000 people, on average, 5 will die within the year. Your company will have to pay out $50,000*5= $250,000. Your company will need to charge each of the 1000 people $250,000/1000=$250 per year to cover that.
answered Jan 16 at 14:32
user247327user247327
11.1k1515
$endgroup$
add a comment |
$begingroup$
You are told that, out of a 1000 people, on average, 5 will die within the year. Your company will have to pay out $50,000*5= $250,000. Your company will need to charge each of the 1000 people $250,000/1000=$250 per year to cover that.
answered Jan 16 at 14:32
user247327user247327
11.1k1515
$endgroup$
add a comment |
$begingroup$
You are told that, out of a 1000 people, on average, 5 will die within the year. Your company will have to pay out $50,000*5= $250,000. Your company will need to charge each of the 1000 people $250,000/1000=$250 per year to cover that.
answered Jan 16 at 14:32
user247327user247327
11.1k1515
$endgroup$
You are told that, out of a 1000 people, on average, 5 will die within the year. Your company will have to pay out $50,000*5= $250,000. Your company will need to charge each of the 1000 people $250,000/1000=$250 per year to cover that.
answered Jan 16 at 14:32
user247327user247327
11.1k1515
answered Jan 16 at 14:32
user247327user247327
11.1k1515
answered Jan 16 at 14:32
user247327user247327
11.1k1515
answered Jan 16 at 14:32
user247327user247327
11.1k1515
11.1k1515
add a comment |
add a comment |
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