Suppose a life insurance company sells a ​$280,000 ​one-year term life insurance policy to a 20​-year-old female for ​$340. The probability that the female survives the year is 0.999606. Compute and interpret the expected value of this policy to the insurance company.

A First Course in Probability (10th Edition)
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Chapter1: Combinatorial Analysis
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Suppose a life insurance company sells a

​$280,000

​one-year term life insurance policy to a

20​-year-old

female for

​$340.

The probability that the female survives the year is

0.999606.

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

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