1. An insurance company sells a $90,000 one-year term life insurance policy for a premium of $458. Find the expected value to the company of a single policy if 99.53% of the insured people survive one year.
A. $35
B. $55
C. $458
D. $89,542
2. 47% of all people in a community favor the development of a mass transit system, while only 18% of the people in that community both favor it and do not own a car. If a person who favors the development of a mass transit system is randomly selected, the probability he/she does not own a car equals approximately:
A. 0.470 B. 0.083 C. 0.383 D. 0.180
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