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?

tommarvoloriddle Jun 23, 2019

#1**+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**

CalculatorUser Jun 23, 2019

#3**+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

ElectricPavlov Jun 23, 2019

#4**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...

tommarvoloriddle
Jun 23, 2019

#5**+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**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