Question: Use the information below as you answer this 6-part question. An insurance company offers a one-year term life insurance policy that pays $150,000 in the

Use the information below as you answer this 6-part question.

An insurance company offers a one-year term life insurance policy that pays $150,000 in the event of death within one year. The premium (annual cost) for this policy for a 50 year old female is $1,150. Suppose that in the event of a claim, the company forfeits the premium and loses a total of $150,000, and if there is no claim the company gains the premium amount of $1,150. The company plans to sell 1,000 policies to this demographic.

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