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People in a Certain Group Have a 0

Question 93

Multiple Choice

People in a certain group have a 0.3% chance of dying this year.If a person in this group buys a life insurance policy for $3,300 that pays $1,000,000 to her family if she dies this year and $0 otherwise,what is the expected value of a policy to the insurance company?


A) $0
B) $300
C) $3,000
D) $3,300

Correct Answer:

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