document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=958072>Question 958072</A>: <I><SPAN STYLE=\"word-break: break-all;\"> A insurance company charges their clients $1400 annual premium. The company estimates that each time a patient that is hospitalized $2450. They estimated that 85% will not be hospitalized, 10% hospitalized once a yr and no one will be hospitalized more than twice.<BR>\n" );
document.write( "what is the company expected profit and what is their profit for 30,000 clients? </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #585502 by </B><A HREF=/tutors/aboutme.mpl?userid=stanbon><B>stanbon(75887)</B></A><img src=\"/images/stars/stars-13.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=stanbon><IMG SRC=http://www.algebra.com/images/aboutme-small.gif BORDER=0 alt=\"About Me\" VALIGN=MIDDLE></A>&nbsp;<IMG SRC=http://www.algebra.com/images/nopicture.jpg><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=585502\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> A insurance company charges their clients $1400 annual premium. The company estimates that each time a patient that is hospitalized $2450. They estimated that 85% will not be hospitalized, 10% hospitalized once a yr and no one will be hospitalized more than twice.<BR>\n" );
document.write( " what is the company expected profit and what is their profit for 30,000 clients?<BR>\n" );
document.write( "----<BR>\n" );
document.write( "Random \"profit\" numbers::.....1400...-1050....-3500<BR>\n" );
document.write( "Corresponding probabilities:: 0.85...0.10....0.05<BR>\n" );
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document.write( "Expected \"profit\" = 0.85*1400 -0.10*1050 -0.05*3500 = $910.00<BR>\n" );
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document.write( "Profit for 30,000 = 30000*910 = $27,300,000.00<BR>\n" );
document.write( "=================<BR>\n" );
document.write( "Cheers,<BR>\n" );
document.write( "Stan H.<BR>\n" );
document.write( "---------------- </SPAN>\n" );
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