+0  
 
0
672
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avatar+1694 

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+2854 
+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+1694 
+18

THANK YU CALCULATOR USER

tommarvoloriddle  Jun 23, 2019
 #3
avatar+23557 
0

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+1694 
+6

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+2854 
+3

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+1694 
+5

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

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