Sam is applying for a single year life insurance policy worth $55,850.00. If the actuarial tables determine that he will survive the next year with probability 0.997, what is his expected value for the life insurance policy if  the premium is $431.00?

Calculus For The Life Sciences
2nd Edition
ISBN:9780321964038
Author:GREENWELL, Raymond N., RITCHEY, Nathan P., Lial, Margaret L.
Publisher:GREENWELL, Raymond N., RITCHEY, Nathan P., Lial, Margaret L.
Chapter12: Probability
Section12.CR: Chapter 12 Review
Problem 67CR
icon
Related questions
Question

Sam is applying for a single year life insurance policy worth $55,850.00. If the actuarial tables determine that he will survive the next year with probability 0.997, what is his expected value for the life insurance policy if 

the premium is $431.00?

Expert Solution
steps

Step by step

Solved in 3 steps

Blurred answer
Recommended textbooks for you
Calculus For The Life Sciences
Calculus For The Life Sciences
Calculus
ISBN:
9780321964038
Author:
GREENWELL, Raymond N., RITCHEY, Nathan P., Lial, Margaret L.
Publisher:
Pearson Addison Wesley,
College Algebra (MindTap Course List)
College Algebra (MindTap Course List)
Algebra
ISBN:
9781305652231
Author:
R. David Gustafson, Jeff Hughes
Publisher:
Cengage Learning