A 40-year-old man in the U.S. has a 0.245% risk of dying during the next year . An insurance company charges $270 per year for a life-insurance policy that pays a $100,000 death benefit. What is the expected value for the person buying the insurance? Round your answer to the nearest dollar. Expected Value: $ for the year
A 40-year-old man in the U.S. has a 0.245% risk of dying during the next year . An insurance company charges $270 per year for a life-insurance policy that pays a $100,000 death benefit. What is the expected value for the person buying the insurance? Round your answer to the nearest dollar. Expected Value: $ for the year
Algebra & Trigonometry with Analytic Geometry
13th Edition
ISBN:9781133382119
Author:Swokowski
Publisher:Swokowski
Chapter10: Sequences, Series, And Probability
Section: Chapter Questions
Problem 35T
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Transcribed Image Text:A 40-year-old man in the U.S. has a 0.245% risk of dying during the next year. An insurance company charges
$270 per year for a life-insurance policy that pays a $100,000 death benefit. What is the expected value for the
person buying the insurance? Round your answer to the nearest dollar.
Expected Value: $
for the year
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