SOLUTION: According to the insurance company, the probability that a woman will survive one year is 0.994, and the probability that she will die in one year is 0.006. If she buys a $10,000 o

SOLUTION: According to the insurance company, the probability that a woman will survive one year is 0.994, and the probability that she will die in one year is 0.006. If she buys a $10,000 o

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Question 360279: According to the insurance company, the probability that a woman will survive one year is 0.994, and the probability that she will die in one year is 0.006. If she buys a $10,000 one-year term policy for $100, what is the company's expected gain or loss?
A) loss of $40,00
B) gain of $40.00
C) No gain or loss
Answer by edjones(8007) (Show Source): You can put this solution on YOUR website!
100-(10000*.006)=40 B
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