Suppose a life insurance company sols a $270,000 one-year term life insurance policy to a 19-year-old female for $240. T

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Suppose A Life Insurance Company Sols A 270 000 One Year Term Life Insurance Policy To A 19 Year Old Female For 240 T 1 (30 KiB) Viewed 28 times

Suppose a life insurance company sols a $270,000 one-year term life insurance policy to a 19-year-old female for $240. The probability that the fernalo survives the year is 0.999823. Compute and interpret the expected value of this policy to the insurance company The expected value is $ Round to two decimal places as needed.) Which of the following interpretation of the expected value is correct? ÞA. The insurance company expects to make an average profit of $239.91 on every 19. your old femalo insures for 1 year. B. The insurance company expects to make an average profit of $21.81 on every 18-year-old femalo it insures for 1 month C. The insurance company expects to make an average profit of $12.58 on every 19-year-old female it insures for 1 month D. The insurance company expects to make an average profit of $138.21 on every 19.year-old female insures for 1 year