Asked by TJ
A 28-year-old man pays $192 for a one-year life insurance policy with coverage of $150,000. If the probability that he will live through the year is 0.9989, what is the expected value for the insurance policy?
Answers
Answered by
MathMate
I have not done actuarial science, but I would be tempted to calculate it as
192/(1-0.9989)=$174,545.
I wonder how the number 0.9989 was calculated.
192/(1-0.9989)=$174,545.
I wonder how the number 0.9989 was calculated.
There are no AI answers yet. The ability to request AI answers is coming soon!
Submit Your Answer
We prioritize human answers over AI answers.
If you are human, and you can answer this question, please submit your answer.