FREE Trial
Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Suppose a life insurance company sells a $170,000 one-year term life insurance policy to a 24-year-old female for $230. The probability that the female survives

image text in transcribed
Suppose a life insurance company sells a $170,000 one-year term life insurance policy to a 24-year-old female for $230. The probability that the female survives the year is 0.999504. Compute and interpret the expected value of this policy to the insurance company. The expected value is $D. (Round to two decimal places as needed.)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Finite Mathematics

Finite Mathematics

Authors: Stefan Waner, Steven Costenoble

7th Edition

133751554X, 9781337515542

More Books

Students also viewed these Mathematics questions

Question

★★★★★
In each of the following, a polynomial P(x) and a divisor d(x) are given. Use long division to find the quotient Q(x) and the remainder R(x) when P(x) is divided by d(x). Express P(x) in the form...

Answered: 1 week ago

Question

★★★★★
Who needs to be involved in statistical process control (SPC)?

Answered: 1 week ago

Question

★★★★★
discuss the societal context of sickness absence and sickness presence.

Answered: 1 week ago

Question

★★★★★
Heron Company purchases commercial realty on November 13, 1997, for $650,000. Straight-line depreciation of $287,492 is claimed before the property is sold on February 23, 2015, for $850,000. What...

Answered: 1 week ago

Question

★★★★★
Following are the merchandisingtransactions for Dollar Store. 1 Dollar Store purchases merchandise for $2,500 on terms of 2/5, n/30, FOB shipping point, invoice dated November 1 5 Dollar Store pays...

Answered: 1 week ago

Question

★★★★★
Ellipses Corp is a small business that operates in Herndon, VA. The company is located at10 Period Lane, Herndon, VA 20170. Its federal Employer Identification Number is 77-7777777, and its...

Answered: 1 week ago

Question

★★★★★
Use the information below to determine the sales revenue, of goods sold and gross profit that would be reported for the company related to the March 16 sale assuming the company uses FIFo inventory...

Answered: 1 week ago

Question

★★★★★
Exeter Division of Wetherby Labs acquired an asset with a cost of $800,000 and a four-year life. The cash flows from the asset, considering the effects of Inflation, were scheduled as follows: Year 1...

Answered: 1 week ago

Question

★★★★★
Flyaway Rural Airlines is planning to add the following three aitcraft to its fleet, an Airbus, a Boeing and an fimbraer, with the following characteristic: Part A: Calculate the weighted average...

Answered: 1 week ago

Question

★★★★★
A C D E G H 1 The finacial manager of a company is preparing the monthly budget report. He aims to understand which of expenses have been over budget in the previous year. 2 You are required to: 3...

Answered: 1 week ago

Question

★★★★★
Question 1(15 Marks): A firm produces one good with a technology given by the production function y = f (x) = x1/3. The factor price w and the price p for the good are fixed. a) Explore whether the...

Answered: 1 week ago

Question

★★★★★
A large country named H is considering an import tariff to protect the industry that produces good X. The world's excess supply curve is P=1000+3X. Country H's excess demand curve is P=8000-50X. a.)...

Answered: 1 week ago

Question

★★★★★
The temporal rule: The closer temporal proximity we have to an event or action, the more probable it is that the distortion of information is less than if the event or action happened longer ago.

Answered: 1 week ago

Question

★★★★★
The relevance of the information to the interpreter

Answered: 1 week ago

Question

★★★★★
The first-hand information rule: If an event is communicated to us by someone who witnessed an event at first-hand, we will have more confidence in the information than if we were told about it by...

Answered: 1 week ago

Previous Question Next Question