Suppose you work for an insurance company and sell individual ten-year $100,200 term life insurance coverage...
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Suppose you work for an insurance company and sell individual ten-year $100,200 term life insurance coverage at an annual premium of $250 to constructors. Actuarial table shows that the probability of death during the next year for a constructor of your customer's age, sex, health, etc., is .0005. What is the expected gain to the company for a policy of this type? Gain (X) Event Probability $250 0.9995 0.0005 $250-$100,200 customer lives customer dies Suppose you work for an insurance company and sell individual ten-year $100,200 term life insurance coverage at an annual premium of $250 to constructors. Actuarial table shows that the probability of death during the next year for a constructor of your customer's age, sex, health, etc., is .0005. What is the expected gain to the company for a policy of this type? Gain (X) Event Probability $250 0.9995 0.0005 $250-$100,200 customer lives customer dies
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Let X represent the amount of profit of money made by the company under th... View the full answer
Related Book For
Managerial Economics
ISBN: 978-0133020267
7th edition
Authors: Paul Keat, Philip K Young, Steve Erfle
Posted Date:
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