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Suppose that a life insurance company insures 900,000 fifty-year-old people in a given year. (Assume death rate of 7 per 1000 people.) The cost of the premium is $500 per year, and the death benefit is $50,000. What is the expected profit or loss for the insurance company?
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Suppose that a life insurance company insures 900,000 fifty-year-old people in a given year. (Assume...
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