Question

The probability that a 25-year-old female in the U.S. will die within one year is about 0.000514. An insurance company is preparing to sell a 25-year-old female a one-year, $55,000 life insurance policy. How much should it charge for its premium in order to have a positive expectation for the policy? (Round your answer to the nearest dollar.)

Answer 1

Answer:

Step-by-step explanation:

Expected payment= 0.000514*55000= 28.27

which would round to 29