Suppose a life insurance company sells a $150,000 one-year term life insurance policy to a 21-year-old...
Suppose a life insurance company sells a $150,000 one-year term life insurance policy to a 19-year-old female for $220. The probability that the female survives the year is 0.999554, Compute and interpret the expected value of this policy to the insurance company The expected value is $ . (Round to two decimal places as needed.) Which of the following interpretation of the expected value is correct? O A. The insurance company expects to make an average profit of $153.10 on...
Suppose a life insurance company sells a $180,000 one-year term life insurance policy to a 20-year-old female for $220. The probability that the female survives the year is 0.999594. Compute and interpret the expected value of this policy to the insurance company. The expected value is $ .
Suppose a life insurance company sells a $280,000 one-year term life insurance policy to a 22-year-old female for $290. The probability that the female survives the year is 0.999583. Compute and interpret the expected value of this policy to the insurance company.
Suppose a life insurance company sells a $230,000 one-year term life insurance policy to a 19-year-old female for $220. The probability that the female survives the year is 0.999516. Compute and interpret the expected value of this policy to the insurance company. The expected value is Round to two decimal places as needed.)
Suppose a life insurance company sells a $240,000 one-year term life insurance policy to a 20-year-old female for $330. The probability that the female survives the year is 0.999458. Compute and interpret the expected value of this policy to the insurance company. The expected value is $|| 1. (Round to two decimal places as needed.)
A life insurance company sells a $200,000 1-year life insurance policy to a 20-year-old female for $300. According to the National Vital Statistic Report, the probability that the female survives the year is 0.999544. Compute and interpret the expected value of this policy to the insurance company.
A life insurance company sells a $250,000 1-year term life insurance policy to a 20-year old male for $350. The probability this person survives the year is 0.98734. Compute the expected value of this policy to the insurance company to the nearest 0.01.
Life Insurance: Your company sells life insurance. You charge a 55 year old man $70 for a one year, $100,000 policy. If he dies over the course of the next year you pay out $100,000. If he lives, you keep the $70. Based on historical data (relative frequency approximation) the average 55 year old man has a 0.9998 probability of living another year. (a) What is your expected profit on this policy? $ (b) What is an accurate interpretation of...
There is a 0.9989 probability that a randomly selected 29-year-old male lives through the year. A life insurance company charges $197 for insuring that the male will live through the year. If the male does not survive the year, the policy pays out $100,000 as a death benefit. Complete parts (a) through (c) below. a. From the perspective of the 29-year-old male, what are the monetary values corresponding to the two events of surviving the year and not surviving? The...
I'm asking about part B of the question
Q517 points) a) A life insurance company sells a $250,000 1-year term life insurance policy to a 20- year-old male for $370. According to the National vital statistics Report, 56(9), the probability that the male survives the year is.998734. Compute and interpret the expected value of this policy to the insurance company. b) (3 points) A surprise quiz consists of a true/false question followed by a multiple choice question with four possible...