document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=537503>Question 537503</A>: <I><SPAN STYLE=\"word-break: break-all;\"> A 28 year old can buy a one-year life insurance policy of $25,000 for $150. Past history indicates that the probability of a person dying at age 28 is 0.003. Determine the company's expected gain per policy.<BR>\n" );
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document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #352886 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=352886\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> A 28 year old can buy a one-year life insurance policy of $25,000 for $150. Past history indicates that the probability of a person dying at age 28 is 0.003. Determine the company's expected gain per policy.\r<BR>\n" );
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document.write( "Let \"x\" be the company's gain:<BR>\n" );
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document.write( "E(x) = 0.997*150 - 0.003(25000-150) = $75<BR>\n" );
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document.write( "Cheers,<BR>\n" );
document.write( "Stan H.<BR>\n" );
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