Insurance: An insurance company sells a 1-year term life insurance policy to an 77-year-old woman....
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Insurance: An insurance company sells a 1-year term life insurance policy to an 77-year-old woman. The woman pays a premium of $1200. If she dies within 1 year, the company will pay $26,000 to her beneficiary. According to the U.S. Centers for Disease Control and Prevention, the probability that an 77-year-old woman will be alive 1 year later is 0.9561. Let X be the profit made by the insurance company.
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