SOLUTION: A man purchased a $23,000, 1-year term-life insurance policy for $425. Assuming that the probability that he will live for another year is 0.983, find the company's expected net ga

Algebra ->  Probability-and-statistics -> SOLUTION: A man purchased a $23,000, 1-year term-life insurance policy for $425. Assuming that the probability that he will live for another year is 0.983, find the company's expected net ga      Log On


   

Question 1053498: A man purchased a $23,000, 1-year term-life insurance policy for $425. Assuming that the probability that he will live for another year is 0.983, find the company's expected net gain.
Answer by ewatrrr(24785) About Me  (Show Source):
You can put this solution on YOUR website!
net gain = .983($23,425) - .017($23,000)