Suppose a life insurance company sells a ​$230,000 ​one-year term life insurance policy to a 20​-year-old female for​$240. The probability that the female survives the year is 0.999463. Compute and interpret the expected value of this policy to the insurance company.

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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Suppose a life insurance company sells a ​$230,000 ​one-year term life insurance policy to a 20​-year-old female for​$240. The probability that the female survives the year is 0.999463.

Compute and interpret the expected value of this policy to the insurance company.
 
 
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