Suppose a life insurance company sells $190,000 one year term life insurance policy to a 25 year old female for $250. The probability that the female survives the year is 0.999655. Compute and interpret tthe expected value of this policy to the insurance company.
Suppose a life insurance company sells $190,000 one year term life insurance policy to a 25 year old female for $250. The probability that the female survives the year is 0.999655. Compute and interpret tthe expected value of this policy to the insurance company.
Holt Mcdougal Larson Pre-algebra: Student Edition 2012
1st Edition
ISBN:9780547587776
Author:HOLT MCDOUGAL
Publisher:HOLT MCDOUGAL
Chapter6: Ratio, Proportion, And Probability
Section6.7: Probability And Odds
Problem 1C
Related questions
Question
100%
Suppose a life insurance company sells $190,000 one year term life insurance policy to a 25 year old female for $250. The
Expert Solution
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 4 steps with 4 images
Recommended textbooks for you
Holt Mcdougal Larson Pre-algebra: Student Edition…
Algebra
ISBN:
9780547587776
Author:
HOLT MCDOUGAL
Publisher:
HOLT MCDOUGAL
College Algebra (MindTap Course List)
Algebra
ISBN:
9781305652231
Author:
R. David Gustafson, Jeff Hughes
Publisher:
Cengage Learning
Holt Mcdougal Larson Pre-algebra: Student Edition…
Algebra
ISBN:
9780547587776
Author:
HOLT MCDOUGAL
Publisher:
HOLT MCDOUGAL
College Algebra (MindTap Course List)
Algebra
ISBN:
9781305652231
Author:
R. David Gustafson, Jeff Hughes
Publisher:
Cengage Learning