The probability that a 50-year-old male in the U.S. will die within one year is about 0.00142. An insurance company is preparing to sell a 50-year-old male a one-year, $30,000 life insurance policy. How much should it charge for its premium in order to have an expectation of $0 for the policy (i.e., make no profit and make no loss)? (Round your answer to the nearest dollar.)
The probability that a 50-year-old male in the U.S. will die within one year is about 0.00142. An insurance company is preparing to sell a 50-year-old male a one-year, $30,000 life insurance policy. How much should it charge for its premium in order to have an expectation of $0 for the policy (i.e., make no profit and make no loss)? (Round your answer to the nearest dollar.)
Algebra & Trigonometry with Analytic Geometry
13th Edition
ISBN:9781133382119
Author:Swokowski
Publisher:Swokowski
Chapter2: Equations And Inequalities
Section2.1: Equations
Problem 70E
Related questions
Question
The probability that a 50-year-old male in the U.S. will die within one year is about 0.00142. An insurance company is preparing to sell a 50-year-old male a one-year, $30,000 life insurance policy. How much should it charge for its premium in order to have an expectation of $0 for the policy (i.e., make no profit and make no loss)? (Round your answer to the nearest dollar.)
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
Recommended textbooks for you
Algebra & Trigonometry with Analytic Geometry
Algebra
ISBN:
9781133382119
Author:
Swokowski
Publisher:
Cengage
![Holt Mcdougal Larson Pre-algebra: Student Edition…](https://www.bartleby.com/isbn_cover_images/9780547587776/9780547587776_smallCoverImage.jpg)
Holt Mcdougal Larson Pre-algebra: Student Edition…
Algebra
ISBN:
9780547587776
Author:
HOLT MCDOUGAL
Publisher:
HOLT MCDOUGAL
Algebra & Trigonometry with Analytic Geometry
Algebra
ISBN:
9781133382119
Author:
Swokowski
Publisher:
Cengage
![Holt Mcdougal Larson Pre-algebra: Student Edition…](https://www.bartleby.com/isbn_cover_images/9780547587776/9780547587776_smallCoverImage.jpg)
Holt Mcdougal Larson Pre-algebra: Student Edition…
Algebra
ISBN:
9780547587776
Author:
HOLT MCDOUGAL
Publisher:
HOLT MCDOUGAL