An insurance company sells a policy to airline passengers for $1. If a flyer dies on a

Question:

An insurance company sells a policy to airline passengers for $1. If a flyer dies on a given flight (from a plane crash), the policy gives $100,000 to the chosen beneficiary. Otherwise, there is no return. Records show that a passenger has about a one in a million chance of dying on any given flight. You buy a policy for your next flight.
a. Specify the probability of the amount of money the beneficiary makes from your policy.
b. Find the mean of the probability in part a. Interpret.
c. Explain why the company is very likely to make money in the long run.
Distribution
The word "distribution" has several meanings in the financial world, most of them pertaining to the payment of assets from a fund, account, or individual security to an investor or beneficiary. Retirement account distributions are among the most...