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Lillian has purchased the 10-year term life insurance policy for the price of $5000. Lillian's chosen beneficiary will receive $100000 in case if Lillian passes
Lillian has purchased the 10-year term life insurance policy for the price of $5000. Lillian's chosen beneficiary will receive $100000 in case if Lillian passes away during the 10-year period. The insurance company estimated the probability of her passing away during the length of the policy to be 0.04%. Let X be the insurance company's profit. Answer the following questions: 1. Create the probability distribution table for X: X outcome a. E[X] = x= b. SD[X]=ox= Lillian passes away Lillian survives profit x P(X= x) ,$ 2. Use the probability distribution table to find the following: dollars. (Round the answer to 1 decimal place.) dollars. (Round the answer to 1 decimal place.)
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