9964 probability that a randomly selected 21-year-old female lives through the year. An insurance company wants to offer her a one-year policy with a death benefit of $1,000 the company charge for this policy if it wants an expected return of $400 from all similar policies?

College Algebra
10th Edition
ISBN:9781337282291
Author:Ron Larson
Publisher:Ron Larson
Chapter8: Sequences, Series,and Probability
Section8.7: Probability
Problem 11ECP: A manufacturer has determined that a machine averages one faulty unit for every 500 it produces....
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There is a 0.99964 probability that a randomly selected 21-year-old female lives through the year. An insurance company wants to offer her a one-year policy with a death benefit of $1,000,000. How
much should the company charge for this policy if it wants an expected return of $400 from all similar policies?
The company should charge $
(Round to the nearest dollar)
Transcribed Image Text:There is a 0.99964 probability that a randomly selected 21-year-old female lives through the year. An insurance company wants to offer her a one-year policy with a death benefit of $1,000,000. How much should the company charge for this policy if it wants an expected return of $400 from all similar policies? The company should charge $ (Round to the nearest dollar)
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