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Insurance: An insurance company sells a 1-year term life insurance policy to an 83-year-old woman. The woman pays a premium of $4000. If she dies
Insurance: An insurance company sells a 1-year term life insurance policy to an 83-year-old woman. The woman pays a premium of $4000. If she dies within 1 year, the company will pay $90,000 to her beneficiary. According to the U.S. Centers for Disease Control and Prevention, the probability that an 83-year-old woman will be alive 1 year later is 0.9561. Let \\ be the profit made by the insurance company. Part 1 of 2 (a) Find the probability distribution. The probability distribution is X -86.000 4000 P (x) 0.0439 0.9561 Part: 1 / 2 Part 2 of 2 (b) Find the expected value of the profit. Expected value of the profit is $ X
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