People in a certain group have a 0.75% chance of dying this year. If a person in this group buys a life insurance policy for $6000 that pays $1,000,000 to her family if she dies this year and $0 otherwise, what is the expected value of the policy? (enter a minus sign if necessary and round your answer to the nearest dollar).

ENGR.ECONOMIC ANALYSIS
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ISBN:9780190931919
Author:NEWNAN
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Chapter1: Making Economics Decisions
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People in a certain group have a 0.75% chance of dying this year. If a person in this group buys a life insurance policy for $6000 that pays $1,000,000 to her family if she dies this year and $0
otherwise, what is the expected value of the policy?
(enter a minus sign if necessary and round your answer to the nearest dollar).
$
Transcribed Image Text:People in a certain group have a 0.75% chance of dying this year. If a person in this group buys a life insurance policy for $6000 that pays $1,000,000 to her family if she dies this year and $0 otherwise, what is the expected value of the policy? (enter a minus sign if necessary and round your answer to the nearest dollar). $
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