Find the Expected Value

question 16

Multiple Choice

Find the expected value.
-A 28-year-old man pays $57 for a one-year life insurance policy with coverage of $130,000. If the probability that he will live through the year is 0.9994, what is the expected value for the insurance policy?

• A)$21.00
• B)-$56.97
• C)$129,922.00
• D)$78.00

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Definitions:

Role Playing

Role playing involves adopting and acting out the role of a character or persona, often in a therapeutic, educational, or training context, to explore different perspectives or behaviors.

Attitude Change

The process by which an individual's viewpoint or feelings towards a subject are altered.

Effort Justification

A special case of cognitive dissonance: inconsistency is experienced when a person makes a considerable effort to achieve a modest goal.

Exclusive Club

A private or restricted group that only allows membership based on certain criteria, often associated with high status or specific interests.