An insurance company sells life insurance of GH₵15,000.00 for a premium of GH₵310.00 per year. Actuarial tables show that the probability of death in the year following the purchase of the policy is 0.1%. What is the expected gain for this type of policy
Contingency Table
A contingency table can be defined as the visual representation of the relationship between two or more categorical variables that can be evaluated and registered. It is a categorical version of the scatterplot, which is used to investigate the linear relationship between two variables. A contingency table is indeed a type of frequency distribution table that displays two variables at the same time.
Binomial Distribution
Binomial is an algebraic expression of the sum or the difference of two terms. Before knowing about binomial distribution, we must know about the binomial theorem.
An insurance company sells life insurance of GH₵15,000.00 for a premium of GH₵310.00 per year. Actuarial tables show that the probability of death in the year following the purchase of the policy is 0.1%. What is the expected gain for this type of policy
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