question archive An insurance company offers a one-year term life insurance policy that pays $150,000 in the event of death within one year
An insurance company offers a one-year term life insurance policy that pays $150,000 in the event of death within one year
Subject:AccountingPrice: Bought3
An insurance company offers a one-year term life insurance policy
that pays $150,000 in the event of death within one year. The premium (annual cost) for this policy for a 50 year old female is $1,150. Suppose that in the event of a claim, the company forfeits the premium and loses a total of $150,000, and if there is no claim the company gains the premium amount of $1,150. The company plans to sell 1,000 policies to this demographic.
The death_prob data frame contains information about the estimated probability of death within 1 year (prob) for different ages and sexes.
Use death_prob to determine the death probability of a 50 year old female, p.
