SOLUTION: According to the insurance company, the probability that a woman will survive one year is 0.994, and the probability that she will die in one year is 0.006. If she buys a $10,000 o

Algebra ->  Probability-and-statistics -> SOLUTION: According to the insurance company, the probability that a woman will survive one year is 0.994, and the probability that she will die in one year is 0.006. If she buys a $10,000 o      Log On


   



Question 360279: According to the insurance company, the probability that a woman will survive one year is 0.994, and the probability that she will die in one year is 0.006. If she buys a $10,000 one-year term policy for $100, what is the company's expected gain or loss?
A) loss of $40,00
B) gain of $40.00
C) No gain or loss

Answer by edjones(8007) About Me  (Show Source):
You can put this solution on YOUR website!
100-(10000*.006)=40 B