contestada

Suppose a life insurance company sells a ​$ ​one-year term life insurance policy to a ​-year-old female for ​$. The probability that the female survives the year is . Compute and interpret the expected value of this policy to the insurance company. In the Show Work​ window, set up the probability distribution you used to calculate the expected value.

Respuesta :

Answer:

The answer is "$ 281.65"

Step-by-step explanation:

It chances of women surviving the year are  [tex]= 0.999535[/tex]

The possibility of the woman staying in the year is:

[tex]=1-0.999535 \\\\=0.000465[/tex]

Unless the woman survives, the company will turn a profit [tex]= \$ \ 370[/tex]

When a woman dies, the business loses:

[tex]\$ \ 189630(370- 190000 = -189630)\\[/tex]

Calculate the assurance company's estimated benefit of the scheme:  

[tex]=370 \times 0.999535 -189630 \times 0.000465\\\\= 369.828 -88.17795 \\\\= 281.65[/tex]

The assurance company anticipated the importance of the policy:

[tex]\$\ 281.65[/tex]