# What is the probability that sara will die in her 60th year

Question # 00612350 Posted By: rey_writer Updated on: 11/03/2017 12:05 PM Due on: 11/03/2017
Subject Mathematics Topic Probability Tutorials:
Question

Probability and Expected Loss

X=age(years) 60 61 62 63 64

p(death at this age 0.00756 0.00825 0.00896 0.00965 0.01035

a) What is the probability that sara will die in her 60th year? using this probability and the \$50,000 death benefits, what is the expected loss?

b) Repeat part(a) for years 61,62,63, and 64. What would be the total expected loss over the years 60 through 64?

c) If the insurance wants to make a profit of \$700 above the expected total loss paid out for Sara death, how much should it charge for the policy?

d) If the insurance company charges \$5,000how much profit does the company expect to make?

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1. ## Solution: What is the probability that sara will die in her 60th year

Tutorial # 00610891 Posted By: rey_writer Posted on: 11/03/2017 12:06 PM
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