Warning: call_user_func_array() expects parameter 1 to be a valid callback, function 'wpdocs_custom_excerpt_length' not found or invalid function name in /home/myonysqo/myonlinehomeworkhelper.com/wp-includes/class-wp-hook.php on line 287

Expected Value

josh
April 22, 2014 0 Comment

[meteor_slideshow slideshow=”adssa” metadata=”height: 126, width: 630″]

PayPal Acceptance Mark


Order Details
Robert Weed is considering purchasing life insurance. He must pay a $180 premium for a $100,000 life insurance policy. If he dies this year, his beneficiary will receive $100,000. If he does not die this year, the insurance company pays nothing and Robert must consider paying another premium next year. Based on actuarial tables, there is a 0.001 probability that Robert will die this year. If Robert wishes to maximize his Expected Value, he would not buy the policy if the Expected Value were negative for him. He has determined that the Expected Value is, indeed negative for him, but decides to purchase the insurance anyway. Why?
A) He believes that the actual likelihood of his death occurring in the next twelve months is really much greater than the actuarial estimate.
B) While the Expected Value is negative, the utility gained from purchasing the insurance is positive, and high.
C) Mr. Weed is not rational.
D) (a) or (c)
E) none of these
[meteor_slideshow slideshow=”best” metadata=”height: 126, width: 630″]

PayPal Acceptance Mark

Facebook
Twitter
Google+
  • 100% Original Essays Guaranteed
  • 8 Hrs Delivery Available
  • Original and creative work
  • Timely delivery guaranteed
  • 100% confidentiality guarantee
  • Variety of disciplines, topics, and deadlines
  • Discounts offered on every custom-ordered paper
  • Original papers written from scratch;
  • 100% confidential;
  • 100% plagiarism-free;
  • Fast turn-around time;
  • Direct communication with the writer;
  • Instant email delivery;
  • Free plagiarism reports;
  • 24/7 customer support team.
  • Choose your font
  • 12 point font size
  • Double-sized
  • Over 275 words/page
  • Text aligned left
  • One inch margin

We Accept

myonlinehomeworkhelper

you have a money back guarantee if you are not satisfied with our services