Mathematics, 13.03.2020 03:33 catherine51
There is a 0.9986 probability that a randomly selected 31-year-old male lives through the year. A life insurance company charges $167 for insuring that the male will live through the year. If the male does not survive the year, the policy pays out $90, 000 as a death benefit.
a. From the perspective of the 31-year-old male, what are the monetary values corresponding to the two events of surviving the year and not surviving?
b. What is the expected value for the insurance company?
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There is a 0.9986 probability that a randomly selected 31-year-old male lives through the year. A li...
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