Final answer:
Life insurance premiums are based on actuarial data and individual factors which are not provided, making it impossible to accurately determine the premium for a 38-year-old female for a $320,000 policy from the given options without additional information.
Step-by-step explanation:
The main answer to the question of determining the life insurance premium for a 38-year-old female seeking a $320,000 straight life policy cannot be precisely provided without specific actuarial data, which typically includes mortality rates and the individual's health and lifestyle factors. However, an explanation of how life insurance premiums are calculated using an actuarially fair approach can be given, as illustrated in the provided reference example.In the reference example, 50-year-old men are divided into two groups based on family history of cancer, and their likelihood of passing within the next year is used to calculate actuarially fair premiums. To calculate a premium, the risk (probability of a claim) is multiplied by the payout amount and then divided among the policyholders. Let's say for the group with a family history of cancer (1 in 50 chance of dying), the actuarially fair premium would be (1/50) * $100,000 = $2,000 per person. Whereas for the other group (1 in 200 chance), it would be (1/200) * $100,000 = $500 per person.In conclusion, without specific data for the 38-year-old female and the general policy pricing of the insurance company, the answer to which option is correct cannot be determined from the options provided ($18.98, $569.40, $6073.60, $7161.60).