Homework Help is Here – Start Your Trial Now!
Math
Statistics
Suppose a life insurance company sells a $210,000 1-year term life insurance policy to a 20-year-old female for $310. According to the National Vital Statistics Report, 58(21), the probability that the female survives the year is 0.999544. Compute and interpret the expected value of this policy to the insurance company. The expected value is $ (Round to the nearest cent as needed.) Which of the following interpretations of the expected value is correct? Select the correct choice below and fill in the answer box to complete your choice. (Round to the nearest cent as needed.) O A. The insurance company expects to make a profit of $ on every 20-year-old female it insures for 1 year. O B. The insurance company expects to make a profit of $ on every 20-year-old female it insures for 1 month O C. The insurance company expects to make a maximum profit of $ on every 20-year-old female it insures for 1 year. O D. The insurance company expects to make a minimum profit of $ on every 20-year-old female it insures for 1 month. ti al

Suppose a life insurance company sells a $210,000 1-year term life insurance policy to a 20-year-old female for $310. According to the National Vital Statistics Report, 58(21), the probability that the female survives the year is 0.999544. Compute and interpret the expected value of this policy to the insurance company. The expected value is $ (Round to the nearest cent as needed.) Which of the following interpretations of the expected value is correct? Select the correct choice below and fill in the answer box to complete your choice. (Round to the nearest cent as needed.) O A. The insurance company expects to make a profit of $ on every 20-year-old female it insures for 1 year. O B. The insurance company expects to make a profit of $ on every 20-year-old female it insures for 1 month O C. The insurance company expects to make a maximum profit of $ on every 20-year-old female it insures for 1 year. O D. The insurance company expects to make a minimum profit of $ on every 20-year-old female it insures for 1 month. ti al

Algebra & Trigonometry with Analytic Geometry
Algebra & Trigonometry with Analytic Geometry
13th Edition
ISBN:9781133382119
Author:Swokowski
Publisher:Swokowski
Chapter10: Sequences, Series, And Probability
Section: Chapter Questions
Problem 35T
See similar textbooks
icon
Related questions
Question
Suppose a life insurance company sells a $210,000 1-year term life insurance policy to a 20-year-old female for $310. According to the National Vital Statistics Report, 58(21), the probability that the female survives the year is 0.999544. Compute and interpret the expected value of this policy to the insurance company. The expected value is S. (Round to the nearest cent as needed.) Which of the following interpretations of the expected value is correct? Select the correct choice below and fill in the answer box to complete your choice. (Round to the nearest cent as needed.) O A. The insurance company expects to make a profit of $ on every 20-year-old female it insures for 1 year. O B. The insurance company expects to make a profit of $ on every 20-year-old female it insures for 1 month. O C. The insurance company expects to make a maximum profit of $ on every 20-year-old female it insures for 1 year. O D. The insurance company expects to make a minimum profit of $ on every 20-year-old female it insures for 1 month. ti a
Transcribed Image Text:Suppose a life insurance company sells a $210,000 1-year term life insurance policy to a 20-year-old female for $310. According to the National Vital Statistics Report, 58(21), the probability that the female survives the year is 0.999544. Compute and interpret the expected value of this policy to the insurance company. The expected value is S. (Round to the nearest cent as needed.) Which of the following interpretations of the expected value is correct? Select the correct choice below and fill in the answer box to complete your choice. (Round to the nearest cent as needed.) O A. The insurance company expects to make a profit of $ on every 20-year-old female it insures for 1 year. O B. The insurance company expects to make a profit of $ on every 20-year-old female it insures for 1 month. O C. The insurance company expects to make a maximum profit of $ on every 20-year-old female it insures for 1 year. O D. The insurance company expects to make a minimum profit of $ on every 20-year-old female it insures for 1 month. ti a
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps with 2 images

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Recommended textbooks for you
Algebra & Trigonometry with Analytic Geometry
Algebra & Trigonometry with Analytic Geometry
Algebra
ISBN:
9781133382119
Author:
Swokowski
Publisher:
Cengage
SEE MORE TEXTBOOKS