document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=865549>Question 865549</A>: <I><SPAN STYLE=\"word-break: break-all;\"> A 35-year-old woman purchases a $100,000 term life insurance policy for an annual payment of $360. Based on a period life table for the U.S. government, the probability that she will survive this year is 0.999057. Find the expected value of the policy for the insurance company.  </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #521821 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=521821\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> A 35-year-old woman purchases a $100,000 term life insurance policy for an annual payment of $360. Based on a period life table for the U.S. government, the probability that she will survive this year is 0.999057. Find the expected value of the policy for the insurance company. <BR>\n" );
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document.write( "Random gain for the company:: 360...........-99,640<BR>\n" );
document.write( "Probabilities..............0.999057....... 0.000943<BR>\n" );
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document.write( "Expected gain = 0.999057*360 - 0.000943*99640 = $265.70<BR>\n" );
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document.write( "Cheers,<BR>\n" );
document.write( "Stan H. </SPAN>\n" );
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