Suppose a life insurance company sells a ​$230,000 ​one-year term life insurance policy to a 20​-year-old female for ​$370.The probability that the female survives the year is 0.999464. Compute and interpret the expected value of this policy to the insurance company.

College Algebra
10th Edition
ISBN:9781337282291
Author:Ron Larson
Publisher:Ron Larson
Chapter8: Sequences, Series,and Probability
Section8.7: Probability
Problem 4ECP: Show that the probability of drawing a club at random from a standard deck of 52 playing cards is...
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Suppose a life insurance company sells a
​$230,000
​one-year term life insurance policy to a
20​-year-old
female for ​$370.The probability that the female survives the year is
0.999464.
Compute and interpret the expected value of this policy to the insurance company.
 
 
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