Saturday
August 29, 2015

Homework Help: Statistics

Posted by Katja on Friday, December 3, 2010 at 4:19pm.

A life insurance company sells a term insurance policy to a 21-year-old male that pays $100,000 if the insured dies within the next 5 years. The probability that a randomly chosen male will die each year can be found in mortality tables. The company collects a premium of $250 each year as payment for the insurance. The amount X that the company earns on this policy is $250 per year, less the $100,000 that it must pay if the insured dies. Here is the distribution of X. Fill in the missing probability in the table and calculate the mean profit μX

Answer this Question

First Name:
School Subject:
Answer:

Related Questions

More Related Questions

Members