Question

5. An insurance company charges a 21-year old male $250 for a one year $100,000 life insurance policy. A 21-year old male has a probability of .9985 of living one year. Find the expected value of this life insurance policy and interpret the results. Please show all work on how you came to your answer

Answer #1

Suppose a life insurance company sells a $190,000 one-year
term life insurance policy to a 20-year-old female for $330. The
probability that the female survives the year is 0.999502. Compute
and interpret the expected value of this policy to the insurance
company.

6. A 35-year-old woman purchases a $100,000 term life insurance
policy for an annual payment of $360. Based on a period life table
for the U.S. government, the probability that she will survive the
year is 0.999057. Find the expected value of the policy for the
insurance company. need a step by step description via
excel

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?

There is a 0.9991 probability that a randomly selected
32-year-old male lives through the year. A life insurance company
charges $173 for insuring that the male will live through the
year. If the male does not survive the year, the policy pays out
100,000 as a death benefit. Complete parts (a) through (c)
below.
a. From the perspective of the 32-year-old male, what are the
monetary values corresponding to the two events of surviving the
year and not surviving?The value...

There is a 0.9983 probability that a randomly selected
32-year-old male lives through the year. A life insurance company
charges
$198 for insuring that the male will live through the year. If
the male does not survive the year, the policy pays out
$100,000 as a death benefit. Complete parts (a) through (c)
below.
a. From the perspective of the 32-year-old male, what are the
monetary values corresponding to the two events of surviving the
year and not surviving?
The...

there is a 0.998 6 probability that a random selected
30 year old male lives through the year a Fidelity life insurance
company charges $160 for ensuring that the mail will live through
the year. If the male does not survive the year the policy pays out
a hunch $110,000 as a death benefit if a 30 year old male purchases
a policy what is his family's expected value

And
insurance company sales a one year term life insurance policy to an
80-year-old woman. The woman pays a premium of $1000. If she dies
within one year the company will pay $20,000 to her beneficiary.
According to the US centers for disease control and prevention the
probability that a 80-year-old woman will be a live one year later
is 0.9516. But X be the profit made by the insurance company. Found
the probability distribution in the ass but the...

There is a
0.99880.9988
probability that a randomly selected
2929-year-old
male lives through the year. A life insurance company
charges
$144144
for insuring that the male will live through the year. If the
male does not survive the year, the policy pays out
$90 comma 00090,000
as a death benefit.
a.
From the perspective of the
2929-year-old
male, what are the monetary values corresponding to the two
events of surviving the year and not surviving?
The value corresponding to surviving...

A $200,000 life insurance term policy costs $150 for 5 years of
coverage for a 30 year old male. If the male dies during those 5
years, the insurance company pays their family $200,000. If he
survives those 5 years, the insurance company will have collected
the $150 premium. The insurance company knows a 30 year old has a
0.000176 probability of dying over 5 years. What is the expected
profit for the insurance company on this policy?

a 30 -year old woman purchases a $200,000 term life insurance
policy for an annual payment of $460. Based on a period life table
for the U.S. Government, the probability that she will survive the
year is 0.999051. Find the expected value of the policy for the
insurance company. Round to two decimal places for currency
problems.

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