an insurance company says that at age 50 one must chose to take $10,000 at age 60, $30,000 at 70, or $50,000 at 80 ($0 death benefit). The probability of living from 50 to 60 is 0.85, from 50 to 70, 0.69, and from 50 to 80, 0.4. find the expected value at each age.

College Algebra
10th Edition
ISBN:9781337282291
Author:Ron Larson
Publisher:Ron Larson
Chapter8: Sequences, Series,and Probability
Section8.7: Probability
Problem 11ECP: A manufacturer has determined that a machine averages one faulty unit for every 500 it produces....
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an insurance company says that at age 50 one must chose to take $10,000 at age 60, $30,000 at 70, or $50,000 at 80 ($0 death benefit). The probability of living from 50 to 60 is 0.85, from 50 to 70, 0.69, and from 50 to 80, 0.4. find the expected value at each age.

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