Question

A 20-year-old female purchases a 1-year life insurance policy worth $250,000. The insurance company determines that she will survive the policy period with probability 0.9995.

(a) If the premium for the policy is $300, what is the expected profit for the company?

(b) At what value should the insurance company set its premium so its expected profit will be $250 per policy for 20-year-old females?

Answer #1

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year is 0.999057. Find the expected value of the policy for the
insurance company. need a step by step description via
excel

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And
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There is a .9968 probability that a randomly selected
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A customer buys a $250,000 life insurance policy with an annual
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If she dies, the insurance company will have to give her
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Calculate the insurance company’s expected value for this
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A 20-year-old woman takes out a $12,000 one-year life insurance
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probability that a 20-year-old women will die within a year is
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