Assume 1000 Students All Healthy,all Age 22,and All Male,form a Life

question 35

Multiple Choice

Assume 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

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Definitions:

Quantity Demanded

The total amount of a good or service that consumers are willing and able to purchase at a given price level in a given period.

Demand

The level of demand for products or services that purchasers can and are willing to pay for at numerous prices over a designated period.

Substitutes

Goods or services that can be used in place of each other, with the capability of satisfying similar consumer needs or desires.

Coors

A well-known brewing company based in Golden, Colorado that produces a wide range of beers.