Expected Value to the Insurance Company
= Probability of Survival * Amount at which plan is sold -
(1- Probability of Survival) * Amount that can be claimed
= 0.99791*527 -(1-0.99791)*$230,000
= 525.9-480.7
= $45.2 is the answer to this question
Question 8 (10 points) A term life insurance policy will pay a beneficiary a certain sum...
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