Problem #4 - Life Insurance A life insurance company sells $250,000 1-year term life insurance policy to a 20-year old for $200. According to the National Vital Statistics Report, the probability that a 20-year old survives the year is 0.999544. Compute the expected value for this policy.
Problem #4 - Life Insurance A life insurance company sells $250,000 1-year term life insurance policy to a 20-year old for $200. According to the National Vital Statistics Report, the probability that a 20-year old survives the year is 0.999544. Compute the expected value for this policy.
A First Course in Probability (10th Edition)
10th Edition
ISBN:9780134753119
Author:Sheldon Ross
Publisher:Sheldon Ross
Chapter1: Combinatorial Analysis
Section: Chapter Questions
Problem 1.1P: a. How many different 7-place license plates are possible if the first 2 places are for letters and...
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Given Information:
A life insurance company sells $250,000 1-year term life insurance policy to a 20-year-old for $200.
Probability that a 20-year-old survives the year is 0.999544
Required: To compute the expected value for this policy.
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