A forty-five year old woman is considering buying a one-year life insurance policy for $620 with a coverage of $200,000. Suppose the probability for a woman of that age living through the year is 99.75%.

Based only on this information, should the woman buy the insurance policy.

A) The expected value is $118.45 - - the woman should buy the insurance policy.

B) The expected value is $1118.45 - - the woman should buy the insurance policy.

C) The expected value is - $118.45 - - the woman should not buy the insurance policy.

D) The expected value is - $1118.45 - - the woman should not buy the insurance policy.

Question

4 June, 19:48

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Maximo Coffey · Answer 1

C) The expected value is - $118.45 - - the woman should not buy the insurance policy. i guessed on mine and i got it right