Suppose that the probability of a certain 22-year-old person dying within a year is 0.001921. They are offered a $200,000.00 life insurance policy for that year and the policy comes at a one-time cost of $375.00. What is the expected value from the standpoint of the insurance company? Round your answer to the nearest cent. What should the company charge if they would like to have an expected value of $90.00 from this policy? Round your answer to the nearest cent.

Suppose that the probability of a certain 22-year-old person dying within a year is 0.001921. They are offered a $200,000.00 life insurance policy for that year and the policy comes at a one-time cost of $375.00. What is the expected value from the standpoint of the insurance company? Round your answer to the nearest cent. What should the company charge if they would like to have an expected value of $90.00 from this policy? Round your answer to the nearest cent.

A First Course in Probability (10th Edition)

10th Edition

ISBN:9780134753119

Author:Sheldon Ross

Publisher:Sheldon Ross

Chapter1: Combinatorial Analysis

Section: Chapter Questions

Problem 1.1P: a. How many different 7-place license plates are possible if the first 2 places are for letters and...

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