Question

Q517 points) a) A life insurance company sells a $250,000 1-year term life insurance policy to a 20- year-old male for $370. According to the National vital statistics Report, 56(9), the probability that the male survives the year is.998734. Compute and interpret the expected value of this policy to the insurance company. b) (3 points) A surprise quiz consists of a true/false question followed by a multiple choice question with four possible answers (such that a, b, c, d ). If both questions are answered by guessing, find the probability that both answers are correct.

I'm asking about part B of the question

Answer 1

Solution:

b)Probability of getting true/false question may be 1/2(either true or false, so 2 possibility)

Probability of getting multiple choice questions may be 1/4(either a or b or c or d, so 4 possibility)

Probability of getting both answers correct is (1/2)*(1/4)=1/8