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The overall U. S. death rate for 40 year-olds is approximately 2 deaths per 1000 people. Suppose that a life insurance company insures 5,700 40
The overall U. S. death rate for 40 year-olds is approximately 2 deaths per 1000 people. Suppose that a life insurance company insures 5,700 40 year-old people. The cost of the premium is $200 per year, and the death benefit is $45,000. What is the expected profit or loss for the insurance company?
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