Suppose a life insurance company sells a $160,000 1-year term life insurance policy to a 20-year-old female for $200. According to the National Vital Statistics Report, 58(21), the probability that the female survives the year is 0.999544. The expected value of this policy to the insurance company is $127.04. What is the standard deviation of the value of the life insurance policy? Why is the value so high? ... The standard deviation of the value of the life insurance is $ (Round to the nearest dollar as needed.)
Suppose a life insurance company sells a $160,000 1-year term life insurance policy to a 20-year-old female for $200. According to the National Vital Statistics Report, 58(21), the probability that the female survives the year is 0.999544. The expected value of this policy to the insurance company is $127.04. What is the standard deviation of the value of the life insurance policy? Why is the value so high? ... The standard deviation of the value of the life insurance is $ (Round to the nearest dollar as needed.)
Calculus For The Life Sciences
2nd Edition
ISBN:9780321964038
Author:GREENWELL, Raymond N., RITCHEY, Nathan P., Lial, Margaret L.
Publisher:GREENWELL, Raymond N., RITCHEY, Nathan P., Lial, Margaret L.
Chapter13: Probability And Calculus
Section13.CR: Chapter 13 Review
Problem 8CR
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