The probability that an 80-year-old male in the U.S. will die within one year is approximately 0.069941. If an insurance company

Question

3 years ago

9

The probability that an 80-year-old male in the U.S. will die within one year is approximately 0.069941. If an insurance company

sells a one-year, $12,000 life insurance policy to such a person for $445, what is the company's expectation? (Round your answer to two decimal places.)

Mathematics

1 answer:

barxatty [35] · Answer 1 · 2023-01-18T18:49:46+03:00

barxatty [35]3 years ago

8 0

Answer:

Step-by-step explanation:

Expected amount the insurance company will pay= 0.069941*12000=839.292

Expected amount the insurance company will make= 445-839.292= -394.292= -394.29