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An insurance company sells a 1-year term life policy to a 78 year old woman. The woman pays a premium of $3000. If she dies
An insurance company sells a 1-year term life policy to a 78 year old woman. The woman pays a premium of $3000. If she dies within 1 year, the company will pay $55,000 to her beneficiary. According to the U. S. Centers for Disease Control and Prevention, the probability that a 78 year old woman will be alive 1 year later is 0.9457. Let the X be the profit made by the insurance company.
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