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In: Statistics and Probability

Suppose a man has a probability of 0.00194 of dying in the next four years. An...

Suppose a man has a probability of 0.00194 of dying in the next four years. An insurance company charges $500 for a $100,000 life insurance four-year term policy to the man. That is, if the man dies within four years, the company must pay his estate $100,000; if he lives, the company pays nothing. Find the expected value of the profit for the company on this policy.

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orchestra answered 2 years ago
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