SOLUTION: A 28-year-old man pays $162 for a one-year life insurance policy with coverage of $80,000. If the probability that he will live through the year is 0.999. what is the exp
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Question 1143578: A 28-year-old man pays $162 for a one-year life insurance policy with coverage of $80,000. If the probability that he will live through the year is 0.999. what is the expected value for the insurance policy? Round to the nearest dollar.
Answer by Boreal(15235) (Show Source): You can put this solution on YOUR website!
E(X)=-0.999(162)+80000(0.001)
=-161.84+80
=-81.84 or -$82.
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