The probability that a 28-year-old male in the U.S. will d!e within one year is approximately 0.001395. If an insurance company

Question

3 years ago

13

The probability that a 28-year-old male in the U.S. will d!e within one year is approximately 0.001395. If an insurance company

sells a one-year, $20,000 life insurance policy to such a person for $135, what is the company's expectation? (Round your answer to the nearest dollar.)

Mathematics

1 answer:

Fed [463] · Answer 1 · 2022-08-28T17:00:24+03:00

Fed [463]3 years ago

7 0

Answer:

Step-by-step explanation:

Expected payment= 0.001395*20000= 27.9

The company could expect to make 135-27.9= 107.1 or 107