A First Course in Probability (10th Edition)
A First Course in Probability (10th Edition)
10th Edition
ISBN: 9780134753119
Author: Sheldon Ross
Publisher: PEARSON
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There is a 0.99962 probability that a randomly selected 25-year-old female lives through the year. An insurance company wants to offer her a one-year policy with a death benefit of $800,000. How much should the company charge for this policy if
it wants an expected return of $600 from all similar policies?
The company should charge $
(Round to the nearest dollar.)
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Transcribed Image Text:There is a 0.99962 probability that a randomly selected 25-year-old female lives through the year. An insurance company wants to offer her a one-year policy with a death benefit of $800,000. How much should the company charge for this policy if it wants an expected return of $600 from all similar policies? The company should charge $ (Round to the nearest dollar.)
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