SOLUTION: a 50 year old women in the US has a 0.0025 chance of dying in the next year. she purchases a $250,000 life insurance policy for $350. what is her expected value of this insurance?

Question 1162647: a 50 year old women in the US has a 0.0025 chance of dying in the next year. she purchases a $250,000 life insurance policy for $350. what is her expected value of this insurance?
Answer by ikleyn(52880) (Show Source): You can put this solution on YOUR website!
.


The expected value is   = 275 dollars.

Pretty much (!)

To die and to earn (!)

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