Question

People in a certain group have a 0.3% chance of dying this year. If a person in this group buys a life insurance policy for $3,300 that pays $1,000,000 to her family if she dies this year and $O otherwise, what is the expected value of a policy to the insurance company?

Name: people in a certain group have a 03 chance of dying this year if a person in this group buys a life insurance policy for 3300 that pays 1000000 to her family if she dies this year and o othe 20788
Uploaded: 2023-02-25T11:11:04-08:00
Duration: 1 min 23 s
Channel: Sri K
Description: people in a certain group have a 03 chance of dying this year if a person in this group buys a life insurance policy for 3300 that pays 1000000 to her family if she dies this year and o othe 20788

          People in a certain group have a 0.3% chance of dying this year. If a person in this group buys a life insurance policy for $3,300 that pays $1,000,000 to her family if she dies this year and $O otherwise, what is the expected value of a policy to the insurance company?

Added by Maxwell P.

Elementary and Intermediate Algebra

Alan S. Tussy, R. David Gustafson 5th Edition

Instant Answer

Solved by Expert Sri K

02/25/2023

Step 1

The probability of the person dying this year is given as 0.3% or 0.003. The probability of the person not dying this year is the complement of the probability of dying, which is 1 - 0.003 = 0.997. Show more…

Show all steps

Thanks for your feedback!

People in a certain group have a 0.3% chance of dying this year. If a person in this group buys a life insurance policy for $3,300 that pays $1,000,000 to her family if she dies this year and $O otherwise, what is the expected value of a policy to the insurance company?