MATH Hosted by ALEKS Corp. Section 5.2 Homework Previous 123 4 5 Next Question 5

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MATH Hosted by ALEKS Corp. Section 5.2 Homework Previous 123 4 5 Next Question 5 of 5(1 point) 5.2 Section Exercise 18 Question A 33-year-old woman purchases a S200,000 term life insurance policy for an annual payment of S560. Based on a period life table for the U.S. government, the probability that she will survive the year is 0.999054. Find the expected value of the policy for the insurance company. Round to two decimal places for currency problems Check Answer Solve It Guided Solution Link to Textbook Tables Formulas | The expected value of the policy for the insurance comp any iss Save for Later Submit Assignment

Explanation / Answer

E(X) = 560 * 0.999051 -199440 * 0.0009 = 379.9726

expected value of the policy for the insurance company is $379.9726

WIN LOSE GAIN (X) 560 199440 P(X) 0.999051 0.0009

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