s. (6 points) Online Users: Social media tools such as Facebook or Twitter are d
ID: 3374610 • Letter: S
Question
s. (6 points) Online Users: Social media tools such as Facebook or Twitter are dominated by younger population, b Internet users are increasingly using online social networks. Here is the distribution of social network users by age group ut adult Elderly Young Adult (19-29 ld 12-18 years 30-49 years ld) 50-70 years old Probability0.45 05 a) Is this is a valid probability table? Explain your answer b) What's the probability that a randomly chosen social network user is between the age of 19 and 49 years? o What's the probability that a social network user is not a teenager (that is older than 18)? &.(4 points) Life Insurance: A 65 year old woman takes out a S100,000 term life insurance policy. The company charges a premium of $520. Mortality tables indicate that only 2.6% of women age 65 die within a year a) Create a probability table that displays the probability associated to insurance gain/loss on the individual policy (similar to the examples in the notes and in the book) insurance profit loss (S)520 S-99,480 in case of death b. Estimate the company's expected profit on such policies for 65 year old women.Explanation / Answer
5)
a)
Yes as sum of all probabilities are 1 and each individual probabilties falls between 0 and 1.
b)
P(between age 19 and 49 years)=P(19-29 years)+P(30-49 Years)=0.35+0.15 =0.50
c)
P(older than 18)= 1-P(less than 18) =1-0.45 =0.55
6)
a)
b)
expected profit =premium-payut =520*0.974-99480*0.026 =-2080
X 520 -99480 probability 0.974 0.026Related Questions
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