document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=1138277>Question 1138277</A>: <I><SPAN STYLE=\"word-break: break-all;\"> It is estimated that there are 22 deaths for every 10 million people who use airplanes.  A company that sells flight insurance provides​ $100,000 in case of death in a plane crash.  A policy can be purchased for​ $1.  Calculate the expected value and thereby determine how much the insurance company can make over the long run for each policy that it sells.<BR>\n" );
document.write( "The expected value is ​$<BR>\n" );
document.write( "​(Round to the nearest​ cent.) </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #756129 by </B><A HREF=/tutors/aboutme.mpl?userid=Theo><B>Theo(13342)</B></A><img src=\"/images/stars/stars-13.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=Theo><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/cgi-bin/show-face.mpl?user=Theo><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=756129\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> the probability of someone dying from being in an airplane is 22 / 10 million.\r<BR>\n" );
document.write( "<BR>\n" );
document.write( "\n" );
document.write( "if a person dies, that person's heirs will receive 100,000.\r<BR>\n" );
document.write( "<BR>\n" );
document.write( "\n" );
document.write( "the cost of a policy is 1 dollar.\r<BR>\n" );
document.write( "<BR>\n" );
document.write( "\n" );
document.write( "the expected value from each policy sold to the company that sells the insurance is 1 dollar minus 22 / 10 million * 100 thousand = .78.\r<BR>\n" );
document.write( "<BR>\n" );
document.write( "\n" );
document.write( "in other words, if the company sold 10 million policies and the odds held, the company would take in 10 million dollars and have to shell out 22 * 100,000 = 2.2 million dollars.\r<BR>\n" );
document.write( "<BR>\n" );
document.write( "\n" );
document.write( "it would have a gross profit of 10 million minus 2.2 million = 7.8 million.\r<BR>\n" );
document.write( "<BR>\n" );
document.write( "\n" );
document.write( "divide that by 10 million policies sold, and the expected value to the company for each policy sold would be .78 dollars.\r<BR>\n" );
document.write( "<BR>\n" );
document.write( "<BR>\n" );
document.write( "<BR>\n" );
document.write( "<BR>\n" );
document.write( "\n" );
document.write( " </SPAN>\n" );
document.write( "</TD></TR></TABLE>\n" );