Answer
It is expected that the insurance company will get a profit of $33.50 for each 1-year term life insurance policy to a 20-year-old male sold.
Work Step by Step
$E(x)=μ_X=Σ[x.P(x)]=350\times0.998734+(-249,650)\times0.001266=33.50$
Statistics: Informed Decisions Using Data (4th Edition)
by Sullivan III, Michael
Published by
Pearson
ISBN 10:
0321757270
ISBN 13:
978-0-32175-727-2
Chapter 6 - Section 6.1 - Assess Your Understanding - Applying the Concepts - Page 332: 28
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