The probability that a 22-year-old female in the U.S. will die within one year is approximately 0.00044. An insurance company sells a one-year, $10,000 life insurance policy to such a person for $455. How much is the company's actual loss (in dollars) if the person dies within one year? $4,400 x Find the probability that the person does not die within one year. How much is the company's profit (in dollars) if the person does not die within one year? $ What is the company's expectation (in dollars)? (Round your answer to the nearest dollar.) $

A First Course in Probability (10th Edition)
10th Edition
ISBN:9780134753119
Author:Sheldon Ross
Publisher:Sheldon Ross
Chapter1: Combinatorial Analysis
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The probability that a 22-year-old female in the U.S. will die within one year is approximately 0.00044. An insurance company sells a one-year, $10,000 life insurance policy to such a person for $455.
How much is the company's actual loss (in dollars) if the person dies within one year?
$4,400
X
Find the probability that the person does not die within one year.
How much is the company's profit (in dollars) if the person does not die within one year?
$
What is the company's expectation (in dollars)? (Round your answer to the nearest dollar.)
$
Transcribed Image Text:The probability that a 22-year-old female in the U.S. will die within one year is approximately 0.00044. An insurance company sells a one-year, $10,000 life insurance policy to such a person for $455. How much is the company's actual loss (in dollars) if the person dies within one year? $4,400 X Find the probability that the person does not die within one year. How much is the company's profit (in dollars) if the person does not die within one year? $ What is the company's expectation (in dollars)? (Round your answer to the nearest dollar.) $
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