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Your company sells life insurance. you charge a 55 year old man $70 for a one year, $100,000 policy. if he dies over the course of the next year you pay out $100,000. if he lives, you keep the $70. based on historical data (relative frequency approximation) the average 55 year old man has a 0.9998 probability of living another year. what is your expected profit on this policy?
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Your company sells life insurance. you charge a 55 year old man $70 for a one year, $100,000 policy....
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