An insurnce company charges a 21-year-old male a premium of $250 for one-year $100,000 life insurance policy.?

An insurnce company charges a 21-year-old male a premium of $250 for one-year $100,000 life insurance policy.? An insurnce company charges a 21-year-old male a premium of $250 for one-year $100,000 life insurance policy. A 21-year-old male has 0.999 probability of living for a year. a. From the perspective of a 21-year-old male (or his estate), what are the values of the two different outcomes? The value if he lives is _____ dollars. The value if he dies is _____ dollars. b. What is the expected value for a 21-year-old male who buys the insurance? The expected value is ______ dollars. c. What would be the cast o the insurance… Read More

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