Insurance: An insurance company sells a l-year term life insurance policy to an 84-year-old man. The man pays a premium of $1600. If he dies within 1 year, the company will pay $33,000 to his beneficiary. According to the U.S. Centers for Disease Control and Prevention, the probability that an 84-year-old man will be alive 1 year later is 0.9537. Let X be the profit made by the insurance company. Part: 0/ 2 Part 1 of 2 (a) Find the probability distribution. The probability distribution is 1600 P (x)

Insurance: An insurance company sells a l-year term life insurance policy to an 84-year-old man. The man pays a premium of $1600. If he dies within 1 year, the company will pay $33,000 to his beneficiary. According to the U.S. Centers for Disease Control and Prevention, the probability that an 84-year-old man will be alive 1 year later is 0.9537. Let X be the profit made by the insurance company. Part: 0/ 2 Part 1 of 2 (a) Find the probability distribution. The probability distribution is 1600 P (x)

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Part: 1 /2
Part 2 of 2
(b) Find the expected value of the profit.
Expected value of the profit is $

Insurance: An insurance company sells a 1-year term life insurance policy to an 84-year-old man. The man pays a premium of $1600. If he dies within 1
year,
the company will pay $33,000 to his beneficiary. According to the U.S. Centers for Disease Control and Prevention, the probability that an 84-year-old man will
be alive 1 year later is 0.9537, Let X be the profit made by the insurance company.
do
Part: 0/2
Part 1 of 2
(a) Find the probability distribution.
The probability distribution is
1600
P (x)

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