SOLUTION: A 28-year-old man pays $189 for a one-year life insurance policy with coverage of $100,000. If the probability that he will live through the year is 0.9994, what is the expected va
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Question 1126599: A 28-year-old man pays $189 for a one-year life insurance policy with coverage of $100,000. If the probability that he will live through the year is 0.9994, what is the expected value for the insurance policy?
Answer by FrankM(1040) (Show Source): You can put this solution on YOUR website!
The chance he'll die is .0006.
.0006 * 100,000 = $60
$60 is the expected payout.
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