Question
A life insurance company sells a $250,000 1-year term life insurance policy to a 20-year-old female for $200. According to the National Vital Statistics Report,
A life insurance company sells a $250,000 1-year term life insurance policy to a 20-year-old female for $200. According to the National Vital Statistics Report, 58(21), the probability that the female survives the year is 0.999544. What is the expected cost of the insurance policy to the insurance company?
please explain how you got the answer
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Linear Algebra A Modern Introduction
Authors: David Poole
4th edition
1285463242, 978-1285982830, 1285982835, 978-1285463247
