Find the Expected Value

question 16

Multiple Choice

Find the expected value.
-A 28-year-old man pays $57 for a one-year life insurance policy with coverage of $130,000. If the probability that he will live through the year is 0.9994, what is the expected value for the insurance policy?

• A)$21.00
• B)-$56.97
• C)$129,922.00
• D)$78.00

Understand the function and significance of the check register in accounting systems.

Learn how to manage and organize paid and unpaid vouchers.

Comprehend the impact of a voucher system on a company’s balance sheet and general ledger.

Grasp the significance of separation of duties in internal control and voucher systems.

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Definitions:

Alternative Hypotheses

In statistics, alternative hypotheses suggest that there is a significant difference, effect, or relationship between two variables.

Square Footage

A measure of area used primarily in the United States, equivalent to the area of a square with sides one foot in length.

P-value

A statistical measure indicating the probability of observing the given or more extreme outcome assuming the null hypothesis is true.

Population Mean

The average value of a characteristic in a population, calculated by summing the values for the characteristic among all individuals and dividing by the total number of individuals.