Suppose a life insurance company sells a $230,000 one-year term life insurance policy to a 24-year-old female for $200. The probability that the female survives the year is 0.999569. Compute and interpret the expected value of this policy to the insurance company. The expected value is $ (Round to two decimal places as needed

Suppose a life insurance company sells a $230,000 one-year term life insurance policy to a 24-year-old female for $200. The probability that the female survives the year is 0.999569. Compute and interpret the expected value of this policy to the insurance company. The expected value is $ (Round to two decimal places as needed

Suppose a life insurance company sells a $150,000 one-year term life insurance policy to a 23-year-old female for $260 the expected value of this policy to the insurance company will be:$198.35

Expected value=(260×0.999589)-(150,000-$260)×(1-0.999589)

Expected value=259.89314-149,740×0.000411

Expected value=$198.35

Interpretation of the Expected value:

Based on the above calculation the insurance company is expect to make an average profit of $198.35 on every 23-year-old female it insured for 1 year.

Inconclusion Suppose a life insurance company sells a $150,000 one-year term life insurance policy to a 23-year-old female for $260 the expected value of this policy to the insurance company will be:$198.35

let's cover over the formula of the vertex:

y = a(x – h)^2 + k

in this formula, (h,k) are the vertex, always remember that the positive or negative value of the vertex is based on the sign it has.

for example, if the vertex is -3,-6 then both the x and y value would have the positive sign attached to it and if it were a positive x and y value, then a negative sign would be attached to it.

with that being said, for our problem the x value is a positive one so we are looking for a number with a negative sign next to it, in this case the first and second choice.

however, for the first answer choice it isn't quite part of the formula so we know that the answer choice correctly displays the x value.

to confirm, we can see if the -1 fits correctly with the second answer choice, and as mentioned above a negative number will have a positive sign attached to it. so, for our problem we can see that -1 has been changed to +1, so we can confirm that the second answer choice is correct.

hence, our final answer is y=(x - 1)^2 + 1

nope.   happens to me as well.

-aparri