Suppose A Life Insurance Company Sells A 240 000
Help with statistical questions? 3
For example, a life insurance company sells عورت 230,000 a year of life insurance to a woman for $ 230. The probability of a woman surviving this year is 0.999619. Calculate and explain the expected cost of this policy for the insurer.
I continued to use the formula for the average of the discrete random variable (u = E [x * P (x)]) and got غلط 229.12 as incorrect answer.
Can anyone help me answer?
This is ny
The probability of s being female is 1 0.999619 = 0.000381
Therefore, the insurer expects a claim = 0.000381 x 230,000 = $ 87.63
The insurer charges a premium of $ 230.00.
Expected cost of this policy for insurer = claim = 230.00 87.63 = 142.37
For example, who helps?
