Mathematics, 05.07.2021 08:50 Cocco

Suppose a life insurance company sells a $200 comma 000 1-year term life insurance policy to a 20
-year-old
female for $350
.
According to the National Vital Statistics Report, 58(21), the probability that the female survives the year is 0.999544
.
The expected value of this policy to the insurance company is $258.80
.
What is the standard deviation of the value of the life insurance policy? Why is the value so high?

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