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11 March, 04:48

A 28-year-old man pays $181 for a one-year life insurance policy with coverage of $150,000. If the probability that he will live through the year is 0.9994, what is the expected value for the insurance policy?

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  1. 11 March, 04:58
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    Expected value E (x) = 0.9994 (150000 - 181) = 0.9994 x 149819 = $149,729.11
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