The amount of money that the company can expect to pay during the year the policies were written is; $25005
<h3>How to find the expected Value?</h3>
The probability that a person will die at age 20 = 0.001
Revenue from 52 policies = 52 * $75,000 = $3,900,000
Revenue from 477 policies = 477 * $25,000 = $11,925,000
Revenue from 918 policies = 918 * $10,000 = $9,180,000
Total revenue from all policies = $3,900,000 + $11,925,000 + $9,180,000
Total Revenue from all Policies = $25,005,000
Expected amount to pay out during the year the policies were written = $25,005,000* 0.001 = $25,005
Thus, the company can expect to pay out $45,000 over the year after the policies were written.
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