can you help me with the wrong answer Assume that a 25-year-old man has these pr

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can you help me with the wrong answer

Assume that a 25-year-old man has these probabilities of dying during the next five years. Age at death 25 26272829 Probability 0.00036 0.00043 0.00053 0.00057 0.00060 (a) What is the probability that the man does not die in the next five years? (Enter your answer to five decimal places.) 0.99751 (b) An online insurance site offers a term insurance policy that will pay $100,000 if a 25-year-old man dies within the next 5 years. The cost is $165 per year. So the insurance company will take in $825 from this policy if the man does not die within five years. If he does die, the company must pay $100,000. Its loss depends on how many premiums were paid, as follows. Age at death 2526 27 28 29 Loss $99,835 $99,670 $99,505 $99,340 $99,175 What is the insurance company's mean cash intake from such polices? (Round your answer to two decimal places.) 572.2641

Explanation / Answer

age of death

What is the insurance company's mean cash intake from such polices

= (-99835*0.00036)+ (-99670*0.00043)+(-99505*0.00053)+(-99340*0.00057)+ (-99175 *0.00060)+ (825*0.99751)

575.2806 it is the correct answer

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age of death

25 26 27 28 29 > 30 loss -99835 -99670 -99505 -99340 -99175 825 probability 0.00036 0.00043 0.00053 0.00057 0.00060 0.99751

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