Logo
Home Study Material Contact Search
AI Chat FREE
  1. mathematics
  2. statistics
  3. suppose a life insurance company sells a 220 000 o

Suppose a life insurance company sells a 220 000 one year term life insurance policy...

90.2K

Verified Solution

Question

Statistics

image

Suppose a life insurance company sells a 220 000 one year term life insurance policy to a 23 year old female for 220 The probability that the female survives the year is 0 999536 Compute and interpret the expected value of this policy to the insurance company The expected value is 117 92 Round to two decimal places as needed Which of the following interpretation of the expected value is correct OA The insurance company expects to make an average profit of 117 92 on every 23 year old female it insures for 1 year OB The insurance company expects to make an average profit of 10 72 on every 23 year old female it insures for 1 month OC The insurance company expects to make an average profit of 219 90 on every 23 year old female it insures for 1 year OD The insurance company expects to make an average profit of 19 99 on every 23 year old female it insures for 1 month

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

The motion of a human body through space can be modeled as the motion of a...

Physics
Q

Assume that you are using a piezoelectric material to build a micro/MEMS actuator beam in order...

Electrical Engineering
Q

Valley Club is considering adding a miniature golf course to its facility. The course would cost...

Finance
Q

A gas mixture consists of molecules of type 1 2 and 3 with molar masses...

Physics
Q

10 8 6 Frequency 4 2 0 Heights of Black Cherry Trees 60 65 70...

Basic Math
Q

Suppose that x and y are related by the given equation and use implicit differentiation...

Statistics
Q

The altitude of a kite is graphed here the y axis is in increments of...

Calculus
Q

Find the area of the region D enclosed by one loop of the four-leaved roser...

Algebra
Q

21 13 1 2x 10 8 6 22 9 8 x 153 2 5 6...

Algebra
Q

Assume another product line is also being considered bookshelves. Only use this information for...

Accounting
Q

Sage Hill Corporation recorded a right-of-use asset for $312,900 as a result of a finance...

Accounting
Q

As the chief investment officer for a money management firm specializing in taxable individual investors,...

Finance