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(Solved): An insurance company sells a 1 -year term life insurance policy to an 79 -year-old man. The man pays ...



An insurance company sells a 1 -year term life insurance policy to an 79 -year-old man. The man pays a premium of $2800 . If he dies within 1 year, the company will pay $41000 to his beneficiary. According to the U.S. Centers for Disease Control and Prevention, the probability that an 79 -year-old man will be alive year 1 later is 0.9318 . Let be the profit made by the insurance company.



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probability of alive = 0.9318probabili
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