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OpenStudy (anonymous):
A 25 year old can purchase a one-year life insurance policy for $10,000 at a cost of $100. Past history indicates that the probability of a person dying at age 25 is 0.0015. Determine the company's expected gain per policy.
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OpenStudy (anonymous):
Help please
OpenStudy (anonymous):
10.000*p
OpenStudy (anonymous):
I think..
OpenStudy (anonymous):
what equation was used?
OpenStudy (anonymous):
companies expected gain per policy: ~ cost for policy ~ 100 - 10,000*0.002 ~ $80
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OpenStudy (anonymous):
Does that make sense?
OpenStudy (anonymous):
somewhat...still a little confused
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