The options available to a policyholder upon termination of a permanent life insurance policy with accumulated cash value are known as the _______ options. List these three options. (19-2)
Econ 225: Ex. You have 12 shirts in your closet. 9 White shirts, 3 Black shirts. Suppose you pick a shirt at random. Put it on, when you get home you take it off and wash it. Suppose you do the same thing the next day, without replacing the first shirt. What is the probability that both shirts you picked out are white Day 1: P(Picking a white shirt)= 9/12 (9 white shirts/ 12 total shirts) Day 2: P(Picking white shirt) = 8/11 (8 White shirts/ 11 total shirts; given that you picked a white shirt on the first day) (Probability of day 1) * (Probability of day 2; Given that day 1’s shirt was white) = (9/12) * (8/11) = .55 Whatever happens on the first day will affect what happens on the second day. It is a dependent probability because day 2 depends on day 1. In this equation we assume both days we pick a white shirt because that is what the question is asking. What if we had 3 events P( A and B and C) = P(A) * P(B/A) * P(C/A and B) What is the probability of selecting a white shirt 3 days in a row P(W and W and W)= P(W) * P(W/ Given that I already picked a white) * P(W/ Given that I already picked up white and white.) P(W & W & W) = P(9/12) * (8/11)* (7/10) = 0.38 Probabilities are conditional. It will not always we 9/12. It will change each time. _____________________________________________________________________________________ Movies <30 30-60 60 or Older Total 0 15 50 60 75 1 or 2 25 100 75
