Suppose a life insurance company sells a $160,000 one-year term life insurance policy to a 23-year-old female for $250. The probability that the female survives the year is 0.999565. Compute and interpret the expected value of this policy to the insurance company. 11 The expected value is $. (Round to two decimal places as needed.) 11 Which of the following interpretation of the expected value is correct? A. The insurance company expects to make an average profit of $16.40 on every 23-year-old female it insures for 1 month. B. The insurance company expects to make an average profit of $180.40 on every 23-year-old female it insures for 1 year. 04 O C. The insurance company expects to make an average profit of $249.89 on every 23-year-old female it insures for 1 year. O D. The insurance company expects to make an average profit of $22.72 on every 23-year-old female it insures for 1 month. O O C

Suppose a life insurance company sells a $160,000 one-year term life insurance policy to a 23-year-old female for $250. The probability that the female survives the year is 0.999565. Compute and interpret the expected value of this policy to the insurance company. 11 The expected value is $. (Round to two decimal places as needed.) 11 Which of the following interpretation of the expected value is correct? A. The insurance company expects to make an average profit of $16.40 on every 23-year-old female it insures for 1 month. B. The insurance company expects to make an average profit of $180.40 on every 23-year-old female it insures for 1 year. 04 O C. The insurance company expects to make an average profit of $249.89 on every 23-year-old female it insures for 1 year. O D. The insurance company expects to make an average profit of $22.72 on every 23-year-old female it insures for 1 month. O O C

College Algebra

10th Edition

ISBN:9781337282291

Author:Ron Larson

Publisher:Ron Larson

Chapter8: Sequences, Series,and Probability

Section: Chapter Questions

Problem 41CT: On a game show, a contestant is given the digits 3, 4, and 5 to arrange in the proper order to form...

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