Suppose a life insurance company sells a $230,000 one-year term life insurance policy to a 20-year-old female for $370.The probability that the female survives the year is 0.999464. Compute and interpret the expected value of this policy to the insurance company.

Suppose a life insurance company sells a $230,000 one-year term life insurance policy to a 20-year-old female for $370.The probability that the female survives the year is 0.999464. Compute and interpret the expected value of this policy to the insurance company.

MATLAB: An Introduction with Applications

6th Edition

ISBN:9781119256830

Author:Amos Gilat

Publisher:Amos Gilat

Chapter1: Starting With Matlab

Section: Chapter Questions

Problem 1P

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Question

Suppose a life insurance company sells a

$230,000

one-year term life insurance policy to a

20-year-old

female for $370.The probability that the female survives the year is

0.999464.

Compute and interpret the expected value of this policy to the insurance company.

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