Problema Solution
If a 6o-year-old buys a $1000 life insurance policy at a cost if $60 and has a probability if 0.972 of living to age 61, find the expectations of the problem.
Answer provided by our tutors
The expected value = 0.972*(-$60) + (1-0.972)*$1000 = -58.32+28 = -$30.32
So the expectations of the problem is -$30.32