Question

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.

Answer 1

Help please

Answer 2

10.000*p

Answer 3

I think..

Answer 4

what equation was used?

Answer 5

companies expected gain per policy:
~ cost for policy
~ 100 - 10,000*0.002
~ $80

Answer 6

Does that make sense?

Answer 7

somewhat...still a little confused