Answered step by step
Verified Expert Solution
Question
1 Approved Answer
An insurance company sells a 1-year term life insurance policy to an 84-year-old man. The man pays a premium of $1,700. If he dies within
An insurance company sells a 1-year term life insurance policy to an 84-year-old man. The man pays a premium of $1,700. If he dies within 1 year, the company will pay $36,000 to his beneficiary. According to the U.S. Centers for Disease Control and Prevention, the probability that an 84-year-old man will be alive 1 year later is 0.9537 Let be the profit made by the insurance company.
(a) Find the probability distribution. The probability distribution is X ? 1700
P(x) ? ?
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