Your Company Issues Flight Insurance

question 122

Short Answer

Your company issues flight insurance. You charge $2 and in the event of a plane crash, you will pay out $1 million to the victim or his or her family. In 1989, the probability of a plane crashing on a single trip was 0.00000165. If ten people per flight buy insurance from you, what was your approximate probability of losing money over the course of 110 million flights in 1989 Round your answer to four decimal places. [Hint: First determine how many crashes there must be for you to lose money.]

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Definitions:

Word Salad

A jumbled mixture of words and phrases that lack logical coherence, often seen in severe cases of mental confusion or disorder.

Positive Symptoms

Symptoms of a disorder that are characterized by the presence of unusual behaviors or feelings, such as hallucinations in schizophrenia.

Schizophrenia

A serious mental illness marked by significant abnormalities in cognition, perception, emotional regulation, communication, self-awareness, and actions.

Psychiatric Ward

A specialized hospital ward dedicated to the treatment and care of patients with mental health disorders.