Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Insurance: an insurance company sells a one-year term life insurance policy to an 82-year-old woman. The woman pays a premium of $4200. If she dies
Insurance: an insurance company sells a one-year term life insurance policy to an 82-year-old woman. The woman pays a premium of $4200. If she dies within one year, the company will pay $62,000 to her beneficiary. According to the US center of disease control and prevention, the probability that an 82-year-old woman would be alive one year later is 0.9332. Let X be the profit made by the insurance company. X -57800 4200 P(x) 0.0668 0.9332 Find the expected value of the profit
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