Find the expected value of the policy

Reference no: EM13331690

1. A lottery offers one $1000 prize, one $500 prize, and five $100prizes. One thousand tickets are sold at $3 each. Find the expectation if a person buys one ticket.

2. A 35-year-old woman purchases a $100,000 term life insurancepolicy for an annual payment of $360. Based on a period lifetable for the U.S. government, the probability that she willsurvive the year is 0.999057. Find the expected value of the policy for the insurance company.

Reference no: EM13331690

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