What i can choose UD IT LMS Quiz Instructions The quiz tests your understonding

Question

What i can choose UD IT LMS Quiz Instructions The quiz tests your understonding of the material. So, please do not consult anyone for assistance in completing the quiz! rades yllabus eople 0.5 pts DQuestion 1 Based on US mortality statistics, the probability that a 30-year old white female will die within the next year is 0.00064. What premium should a life insurance company charge to earn an $80 proft on a $500,000 one-year term insurance policy for a 30-year old white female? Please select the closest response. 0300 O 400 04000 0320 0200

Explanation / Answer

Let the premium be x. Given, Expected value = $80

Hence,

- 0.00064*(500000 - x) + (1 - 0.00064)*x = 80

x = 400

Option B is correct.

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