Question

1. An insurance company sells a $90,000 one-year term life insurance policy for a premium of...

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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