document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=384392>Question 384392</A>: <I><SPAN STYLE=\"word-break: break-all;\"> the probability that an american dies citizen in his 20th year is 0.00178 assume that a life insurence company will sell a 1000$ one year policy to a 19 year old for 5$ what is expected gain obtained by insurence company from selling one such polecy </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #272120 by </B><A HREF=/tutors/aboutme.mpl?userid=stanbon><B>stanbon(75887)</B></A><img src=\"/images/stars/stars-13.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=stanbon><IMG SRC=http://www.algebra.com/images/aboutme-small.gif BORDER=0 alt=\"About Me\" VALIGN=MIDDLE></A>&nbsp;<IMG SRC=http://www.algebra.com/images/nopicture.jpg><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=272120\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> the probability that an american dies citizen in his 20th year is 0.00178. assume that a life insurance company will sell a $1000 one year policy to <BR>\n" );
document.write( "a 19 year old for $5.<BR>\n" );
document.write( "what is expected gain obtained by insurance company from selling one such <BR>\n" );
document.write( "a policy?<BR>\n" );
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document.write( "Let the \"gain\" for the company be \"x\":<BR>\n" );
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document.write( "x values are $5 and -$995<BR>\n" );
document.write( "probabilities are (1-0.00178) and 0.00178<BR>\n" );
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document.write( "E(x) = 0.99822*5 + 0.00178*(-995) = $3.22<BR>\n" );
document.write( "===============<BR>\n" );
document.write( "Cheers,<BR>\n" );
document.write( "Stan H.\r<BR>\n" );
document.write( "<BR>\n" );
document.write( "\n" );
document.write( " </SPAN>\n" );
document.write( "</TD></TR></TABLE>\n" );