I know how to do it but I don't know how to round it to the nearest cent and get 70.51The probability a 25 year old male passes away within the year is .001430. He pays $275 for a one year $143000 life insurance policy. What is the expected value of the policy for the insurance company? Round your answer to the nearest cent.

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Asked Sep 27, 2019
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I know how to do it but I don't know how to round it to the nearest cent and get 70.51

The probability a 25 year old male passes away within the year is .001430. He pays $275 for a one year $143000 life insurance policy. What is the expected value of the policy for the insurance company? Round your answer to the nearest cent.

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Expert Answer

Step 1

The provided information is:

 

The life insurance policy (L) =143000 $

The paid money for one year (P) =275$

Consider, q is th...

q=0.00143
The probability (p) that the man will for survive at the age of 25 years is:
p =1-q
1-0.00143
0.9986
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q=0.00143 The probability (p) that the man will for survive at the age of 25 years is: p =1-q 1-0.00143 0.9986

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