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Suppose a life insurance company sells a 200 000 1 year term life insurance policy to a 20 year old female for 200 According to the National Vital Statistics Report 58 21 the probability that the female survives the year is 0 999544 Compute and interpret the expected value of this policy to the insurance company The expected value is 108 8 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 A The insurance company expects to make a profit of on every 20 year old female it insures for 1 month The insurance company expects to make a maximum profit of for 1 year B OC The insurance company expects to make a profit of on every 20 year old female it insures on every 20 year old female it insures for 1 year
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