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:

Affection

A feeling of fondness or liking for someone or something, often displayed through physical or verbal expressions.

Reactive Aggression

A form of aggressive behavior that is prompted in response to a perceived threat or frustration, often impulsive and emotional rather than premeditated.

Overt Aggression

A form of aggressive behavior that is openly displayed and directly targeted towards someone, often involving physical or verbal hostility.

Passive Aggression

A behavior pattern where negative feelings are expressed indirectly rather than directly, often through procrastination, stubbornness, and sullenness.