Suppose a life insurance company sells a $160,000 one-year term life insurance policy to a 20-year-old female for $260. The probability that the female survives the year is 0.999592. Compute and interpret the expected value of this policy to the insurance company. The expected value is $ (Round to two decimal places as needed.)

Suppose a life insurance company sells a $160,000 one-year term life insurance policy to a 20-year-old female for $260. The probability that the female survives the year is 0.999592. Compute and interpret the expected value of this policy to the insurance company. The expected value is $ (Round to two decimal places as needed.)

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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