People in a certain group have a 75% chance of dying this year. If a person in

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People in a certain group have a 75% chance of dying this year. If a person in this group buys a life insurance policy for $4500that pays $1,000,000 to her family if she dies this year and $0 otherwise, what is the expected value of the policy?

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Principles of economics

ISBN: 978-0538453042

6th Edition

Authors: N. Gregory Mankiw

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Posted Date: Mar 10, 2022 02:03 AM

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People in a certain group have a 75% chance of dying this year. If a person in

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Value when dying 10000004500 995500 at the probability of 025 Value when not dyin... View the full answer

Principles of economics

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