SOLUTION: A 35 year old woman purchases a $100,000 term life insurance policy for an annual payment of $360. Based on a period life toable for the U.S. government, the probablity that she wi
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-> SOLUTION: A 35 year old woman purchases a $100,000 term life insurance policy for an annual payment of $360. Based on a period life toable for the U.S. government, the probablity that she wi
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Question 130429This question is from textbook Statistics
: A 35 year old woman purchases a $100,000 term life insurance policy for an annual payment of $360. Based on a period life toable for the U.S. government, the probablity that she will survive the year is is 0.999057. Find the expected value of the policy for the insurance company. This question is from textbook Statistics
You can put this solution on YOUR website! 1-.999057=.000943*100,000=$94.3 DOLLARS IS THE EXPECTED PAYOUT FOR EACH OF THE INSURED IN A GIVEN YEAR.
THUS THEIR PROFIT IS $360-$94.3=$265.7 FOR THE FIRST YEAR.
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