document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=867140>Question 867140</A>: <I><SPAN STYLE=\"word-break: break-all;\"> 1. A woman pays a premium of $260 per year for a $20,000 life insurance policy. The probability that she will live for another year is 0.992. What is the expected value for the life insurance 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 #522767 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=522767\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> A woman pays a premium of $260 per year for a $20,000 life insurance policy. The probability that she will live for another year is 0.992. What is the expected value for the life insurance policy?<BR>\n" );
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document.write( "Random \"gain\" for the company::.....260......-19,740<BR>\n" );
document.write( "Probabilities:::...................0.992.....0.008\r<BR>\n" );
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document.write( "Ans:: 0.992*260 - 0.008*19740 = $100<BR>\n" );
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document.write( "Cheers,<BR>\n" );
document.write( "Stan H.<BR>\n" );
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