28 The probability that a 50-year-old man will survive a fixed length of time is 0.995. An insurance company will sell him a $20,000 life insurance policy for this length of time for a premium of $200. What is the expected gain for the insurance company? * , $200 $100 $250 $150 O O O

Algebra & Trigonometry with Analytic Geometry
13th Edition
ISBN:9781133382119
Author:Swokowski
Publisher:Swokowski
Chapter10: Sequences, Series, And Probability
Section10.8: Probability
Problem 68E
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28
The probability that a 50-year-old man will survive a fixed length of time is 0.995. An insurance
company will sell him a $20,000 life insurance policy for this length of time for a premium of
$200. What is the expected gain for the insurance company?
*
$200
$100
$250
$150
Transcribed Image Text:28 The probability that a 50-year-old man will survive a fixed length of time is 0.995. An insurance company will sell him a $20,000 life insurance policy for this length of time for a premium of $200. What is the expected gain for the insurance company? * $200 $100 $250 $150
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