We use cookies to personalise content and advertisements and to analyse access to our website. Furthermore, our partners for online advertising receive pseudonymised information about your use of our website. cookie policy and privacy policy.
 
+0  
 
0
89
6
avatar+625 

Sam is applying for a single year life insurance policy worth $25,700.00. If the actuarial tables determine that he will survive the next year with probability 0.99, what is the expected value for the life insurance if the premium is $362.00?

 Jun 23, 2019
 #1
avatar+646 
+3

I am not sure if this is right, I just searched up how to do this kind of problem.

 

 : Find the expected value of life insurance if the premium is $362.00

 

Do (362) * (0.99) - (25700) * (0.01)

 

The answer will be:

 

(362)*(0.99)-(25700)*(0.01) = 101.38

 Jun 23, 2019
 #2
avatar+625 
+5

THANK YU CALCULATOR USER

tommarvoloriddle  Jun 23, 2019
 #3
avatar+18439 
+3

Maybe $105?    I had to loOk this one up also....but the example I found may be incorrect...

 

362(.99) -(25700-362)(.01) = $ 105

 Jun 23, 2019
 #4
avatar+625 
0

I honestly got -162.something, then retried and got 56... so I came here... And I was wrong both counts... Nobody on the internet agrees with me...sad

tommarvoloriddle  Jun 23, 2019
 #5
avatar+646 
+2

There must be a concrete way to do this...

 

I have never seen this type of problem before, it is quite strange.

CalculatorUser  Jun 24, 2019
 #6
avatar+625 
0

same... I was helping an user at brainly.com, then the user popped a random question at me.... I was so confused so I posted here...

tommarvoloriddle  Jun 26, 2019

5 Online Users