Question: GESCO Insurance Company charges a 350 premium per annum for

GESCO Insurance Company charges a $350 premium per annum for a $100,000 life insurance policy for a 40-year-old female. The probability that a 40-year-old female will die within 1 year is .002.
a. Let x be a random variable that denotes the gain of the company for next year from a $100,000 life insurance policy sold to a 40-year-old female. Write the probability distribution of x.
b. Find the mean and standard deviation of the probability distribution of part a. Give a brief interpretation of the value of the mean.

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  • CreatedAugust 25, 2015
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