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(1 point) Sam is applying for a single year life insurance policy worth $69,800.00. If the actuarial tables determine that she will survive the next year with probability 0.99, what is her expected value
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(1 point) Sam is applying for a single year life insurance policy worth $69,800.00. If the actuarial tables determine that she will survive the next year with probability 0.99, what is her expected value for the life insurance policy if the premium is $393.00

User Gtomika
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1 Answer

5 votes

Answer:

The expected value might go down by $308.

Step-by-step explanation:

Find the expected value of life insurance if the premium is $393.00

Do (393) * (0.99) - (69800) * (0.01)

The answer will be:

(393) * (0.99) - (69800) * (0.01) = -308

User Mooh
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