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A 40-year-old man in the U.S. has a 0.24% risk of dying during the next year. An insurance company charges $290 per year for
A 40-year-old man in the U.S. has a 0.24% risk of dying during the next year. An insurance company charges $290 per year for a life-insurance policy that pays a $100,000 death benefit. What is the expected value for the person buying the insurance? Round your answer to the nearest cent. Be careful with negative signs. Expected Value: $ -237129 -50 for the year
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Microeconomics
Authors: Paul Krugman, Robin Wells
3rd edition
978-1429283427, 1429283424, 978-1464104213, 1464104212, 978-1429283434
