Assume That 1000 Students, All Healthy, All Age 22, and All

Multiple Choice

Assume that 1000 students, all healthy, all age 22, and all male, form a life insurance pool to pay $500 to the beneficiaries of any member who dies in the next 365 days. The chance of loss or probability of death for the members of this group is .002. To join the pool a member must pay: (Disregard interest earnings and reserves and assume expenses of operating the insurance pool are 30% of losses) .

A) $1
B) $1.30
C) $3
D) $2.28