Suppose a life insurance company sells a 240 000 1 year term life insurance policy...
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Suppose a life insurance company sells a 240 000 1 year term life insurance policy to a 20 year old female for 180 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 Round to the nearest cent as needed CO 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 to make a profit of OB The insurance company expects to make a maximum O c The insurance company expects to make a profit of OD on every 20 year old female it insures for 1 month profit of on every 20 year old female it insures for 1 year on every 20 year old female it insures for 1 The insurance company expects to make a minimum profit of month on every 20 year old female it insures for 1 year
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