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3 years ago

7

A 28-year-old man pays $181 for a one-year life insurance policy with coverage of $150,000. If the probability that he will live

through the year is 0.9994, what is the expected value for the insurance policy?

1 answer:

Marina CMI [18]3 years ago

3 0

Expected value E(x) = 0.9994(150000 - 181) = 0.9994 x 149819 = $149,729.11

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