Suppose a life insurance company sells $190,000 one year term life insurance policy to a 25 year old female for $250. The probability that the female survives the year is 0.999655. Compute and interpret tthe expected value of this policy to the insurance company.
Suppose a life insurance company sells $190,000 one year term life insurance policy to a 25 year old female for $250. The probability that the female survives the year is 0.999655. Compute and interpret tthe expected value of this policy to the insurance company.
Algebra & Trigonometry with Analytic Geometry
13th Edition
ISBN:9781133382119
Author:Swokowski
Publisher:Swokowski
Chapter10: Sequences, Series, And Probability
Section: Chapter Questions
Problem 29T
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Suppose a life insurance company sells $190,000 one year term life insurance policy to a 25 year old female for $250. The probability that the female survives the year is 0.999655. Compute and interpret tthe
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