Mathematics, 15.07.2020 01:01 2965276513

Suppose a life insurance company sells a $250,000 one-year term life insurance policy to a 35-year-old female for $450. According to the National Vital Statistics, Vol. 68, No. 7, the probability that the female survives the year is 0.9989. Use the table below to compute the mean of this policy to the insurance company. Interpret the mean in terms of expected value.

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Suppose a life insurance company sells a $250,000 one-year term life insurance policy to a 35-year-o...

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