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