Suppose a life insurance company sells a $260,000 1-year term life insurance policy to a 20-year-old female for $280. According to the National Vital Statistics Report, 58(21), the probability that the female survives the year is 0.99954 Compute and interpret the expected value of this policy to the insurance company. The expected value is $. (Round to the nearest cent as needed.) Which of the following interpretations of the expected value is correct? Select the correct choice below and fill in the answer box to complete your choice. Round to the nearest cent as needed.) OA. The insurance company expects t make a maximum profit of $ OB. The insurance company expects to make a profit of $ Oc. The insurance company expects to make a minimum OD. The insurance company expects to make a profit of $ on every 20-year-old female it insures for 1 year. on every 20-year-old female it insures for 1 year. profit of $ on every 20-year-old female it insures for 1 month. on every 20-year-old female it insures for 1 month.

Suppose a life insurance company sells a $260,000 1-year term life insurance policy to a 20-year-old female for $280. According to the National Vital Statistics Report, 58(21), the probability that the female survives the year is 0.99954 Compute and interpret the expected value of this policy to the insurance company. The expected value is $. (Round to the nearest cent as needed.) Which of the following interpretations of the expected value is correct? Select the correct choice below and fill in the answer box to complete your choice. Round to the nearest cent as needed.) OA. The insurance company expects t make a maximum profit of $ OB. The insurance company expects to make a profit of $ Oc. The insurance company expects to make a minimum OD. The insurance company expects to make a profit of $ on every 20-year-old female it insures for 1 year. on every 20-year-old female it insures for 1 year. profit of $ on every 20-year-old female it insures for 1 month. on every 20-year-old female it insures for 1 month.

College Algebra

10th Edition

ISBN:9781337282291

Author:Ron Larson

Publisher:Ron Larson

Chapter8: Sequences, Series,and Probability

Section: Chapter Questions

Problem 41CT: On a game show, a contestant is given the digits 3, 4, and 5 to arrange in the proper order to form...

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