O $19.27 O $10.07 O $17.01 O $19.05

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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A life insurance company sells a $255,000 1-year term life insurance policy to a 29-year-old male for $450. According to the National Vital Statistics Report the probability that the female
survives the year is 0.99831. Compute the expected value of this policy to the insurance company.
O $19.27
O $10.07
O $17.01
O $19.05
Transcribed Image Text:A life insurance company sells a $255,000 1-year term life insurance policy to a 29-year-old male for $450. According to the National Vital Statistics Report the probability that the female survives the year is 0.99831. Compute the expected value of this policy to the insurance company. O $19.27 O $10.07 O $17.01 O $19.05
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