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Mathematics, 05.07.2021 08:50 Cocco

Suppose a life insurance company sells a ​$200 comma 000 ​1-year term life insurance policy to a 20
​-year-old
female for ​$350
.
According to the National Vital Statistics​ Report, 58(21), the probability that the female survives the year is 0.999544
.
The expected value of this policy to the insurance company is ​$258.80
.
What is the standard deviation of the value of the life insurance​ policy? Why is the value so​ high?

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