**Insurance Policy Expected Value Calculation**Suppose a life insurance company sells a $260,000 one-year term life insurance policy to a 19-year-old female for $200. The probability that the female survives the year is 0.999637. Compute and interpret the expected value of this policy for the insurance company.**Calculation**:- The expected value is $[Box for input].- (Round to two decimal places as needed.)This calculation helps the insurance company determine the average expected profit or loss from selling this policy to a 19-year-old female, taking into account the probability of payout.

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Description: **Insurance Policy Expected Value Calculation**Suppose a life insurance company sells a $260,000 one-year term life insurance policy to a 19-year-old female for $200. The probability that the female survives the year is 0.999637. Compute and interpr

Given data: The amount which is required to purchase the policy = $200. The probability that the…

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Suppose a life insurance company sells a $260,000 one-year term life insurance policy to a 19-year-old female for $200. The probability that the female survives the year is 0.999637. Compute and interpret the expected value of this policy to the insurance company. The expected value is $

Suppose a life insurance company sells a $260,000 one-year term life insurance policy to a 19-year-old female for $200. The probability that the female survives the year is 0.999637. Compute and interpret the expected value of this policy to the insurance company. The expected value is $

MATLAB: An Introduction with Applications

6th Edition

ISBN:9781119256830

Author:Amos Gilat

Publisher:Amos Gilat

Chapter1: Starting With Matlab

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Problem 1P

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Concept explainers

Contingency Table

A contingency table can be defined as the visual representation of the relationship between two or more categorical variables that can be evaluated and registered. It is a categorical version of the scatterplot, which is used to investigate the linear relationship between two variables. A contingency table is indeed a type of frequency distribution table that displays two variables at the same time.

Binomial Distribution

Binomial is an algebraic expression of the sum or the difference of two terms. Before knowing about binomial distribution, we must know about the binomial theorem.

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**Insurance Policy Expected Value Calculation**

Suppose a life insurance company sells a $260,000 one-year term life insurance policy to a 19-year-old female for $200. The probability that the female survives the year is 0.999637. Compute and interpret the expected value of this policy for the insurance company.

**Calculation**:
- The expected value is $[Box for input].
- (Round to two decimal places as needed.)

This calculation helps the insurance company determine the average expected profit or loss from selling this policy to a 19-year-old female, taking into account the probability of payout.

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