7.D.23 Question Help
Suppose that a life insurance company insures 1,300,000 fifty-year-old people in
a given year. (Assume a death rate of 8 per 1000 people.) The cost of the
premium is $200 per year, and the death benefit is $50,000. What is the expected
profit or loss for the insurance company?
The insurance company can expect a(n) $ million
(Type an integer or decimal rounded to one decimal pº
1.)
loss.
profit.