Suppose that a life insurance company insures 1,000,000 fifty-year-old people in a given year. (Assume a death rate of 4 per 1000 people.) The cost of the premium is $100 per year, and the death benefit is $50,000. What is the expected profit or loss for the insurance company? The insurance company can expect a(n) $ million (Type an integer or decimal rounded to one decimal place as needed.)

Advanced Engineering Mathematics
10th Edition
ISBN:9780470458365
Author:Erwin Kreyszig
Publisher:Erwin Kreyszig
Chapter2: Second-order Linear Odes
Section: Chapter Questions
Problem 1RQ
icon
Related questions
Question
Suppose that a life insurance company insures 1,000,000 fifty-year-old people in a given year. (Assume a death rate
of 4 per 1000 people.) The cost of the premium is $100 per year, and the death benefit is $50,000. What is the
expected profit or loss for the insurance company?
The insurance company can expect a(n) $
million
(Type an integer or decimal rounded to one decimal place as needed.)
Transcribed Image Text:Suppose that a life insurance company insures 1,000,000 fifty-year-old people in a given year. (Assume a death rate of 4 per 1000 people.) The cost of the premium is $100 per year, and the death benefit is $50,000. What is the expected profit or loss for the insurance company? The insurance company can expect a(n) $ million (Type an integer or decimal rounded to one decimal place as needed.)
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps

Blurred answer
Similar questions
Recommended textbooks for you
Advanced Engineering Mathematics
Advanced Engineering Mathematics
Advanced Math
ISBN:
9780470458365
Author:
Erwin Kreyszig
Publisher:
Wiley, John & Sons, Incorporated
Numerical Methods for Engineers
Numerical Methods for Engineers
Advanced Math
ISBN:
9780073397924
Author:
Steven C. Chapra Dr., Raymond P. Canale
Publisher:
McGraw-Hill Education
Introductory Mathematics for Engineering Applicat…
Introductory Mathematics for Engineering Applicat…
Advanced Math
ISBN:
9781118141809
Author:
Nathan Klingbeil
Publisher:
WILEY
Mathematics For Machine Technology
Mathematics For Machine Technology
Advanced Math
ISBN:
9781337798310
Author:
Peterson, John.
Publisher:
Cengage Learning,
Basic Technical Mathematics
Basic Technical Mathematics
Advanced Math
ISBN:
9780134437705
Author:
Washington
Publisher:
PEARSON
Topology
Topology
Advanced Math
ISBN:
9780134689517
Author:
Munkres, James R.
Publisher:
Pearson,