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An Insurance company is working in Oman and expecting to sell life insurance policies for 7 years. The amount payable if the death occurs is
An Insurance company is working in Oman and expecting to sell life insurance policies for 7 years. The amount payable if the death occurs is 25000 OMR the company actuary has calculated that the probability of death for 55-year-old man over the next 7 years is 0.021 and the suitable premium for such policy is 900 OMR. What is the insurance companys expected gain if sells one of these policies to 55-year-old man?
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