SOLUTION: 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 .992. What is the expected value for the lif

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Question 866441: 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 .992.
What is the expected value for the life insurance company?
Sincerely appreciate your help!

Answer by ewatrrr(24785) About Me  (Show Source):
You can put this solution on YOUR website!
.992%2A260+-+.008%2A19740 = $257.92 - $157.92 = $100