Question: Tutorial Exercise The probability that an 80-year-old male in the U.S. will die within one year is approximately 0.069941. If an insurance company sells

Tutorial Exercise The probability that an 80-year-old male in the U.S. will

Tutorial Exercise The probability that an 80-year-old male in the U.S. will die within one year is approximately 0.069941. If an insurance company sells a one-year, $13,000 life insurance policy to such a person for $432, what is the company's expectation? Part 1 of 3 Let S be the event that the person dies within one year. Then P(S) = 0.069941 . In this case, the company has to pay out $13,000. Since the company charged $432 for this policy, the company's actual loss is $ 506.264 X Submit Skip (you cannot come back)

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