People in a Certain Group Have a 0

question 93

Multiple Choice

People in a certain group have a 0.3% chance of dying this year.If a person in this group buys a life insurance policy for $3,300 that pays $1,000,000 to her family if she dies this year and $0 otherwise,what is the expected value of a policy to the insurance company?

• A) $0
• B) $300
• C) $3,000
• D) $3,300

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Definitions:

Interaction

The reciprocal action or influence between two or more entities, often leading to a change or response.

Symbolic Interaction

A sociological perspective that analyzes society by studying the day-to-day interactions of individuals and the meanings they attach to those interactions.

Social Thought

The body of work encompassing theories, ideas, and philosophies concerning the functioning, structure, and development of human societies.

Organismic Model

A perspective that views societies or systems as living organisms with interdependent parts.