Mathematics, 31.05.2020 19:57 dtilton2003
Avicenna, a major insurance company, offers five-year life insurance policies to -65 year-olds. If the holder of one of these policies dies before the age of 70 , the company must pay out $24,200 to the beneficiary of the policy. Executives at Avicenna are considering offering these policies for $573 each. Suppose that for each holder of a policy there is a 2% chance that they will die before the age of and 70 a 98% chance they will live to the age of 70.
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Avicenna, a major insurance company, offers five-year life insurance policies to -65 year-olds. If t...
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