What premium should an insurance company charge to make an expected profit $25 per policy, given that each policy is for $50,000 and the probability of death for a policy holder is 0.009?

# Whats the answer

Welcome Maha to studyit.

Your question is not related to evaluating a statistical report.

The question is the use of expectation algebra based on the value of the policy and the profit the insurance company wants to make based on the risk of the policy holder dying.

See https://youtu.be/ZdK4kiyaJUk

MT2