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Suppose a life insurance company sells a ?190,000 ?one-year term life insurance policy to a 20?-year-old female for ? $370. The probability that the female survives the year is 0.999588. Compute and interpret the expected value of this policy to the insurance company. The expected value is ?$ nothing. ?(Round to two decimal places as? needed.)
Which of the following interpretation of the expected value is? correct?
A. The insurance company expects to make an average profit of ?$369.85 on every 20 dash year dash old 20-year-old female it insures for 1 year.
B. The insurance company expects to make an average profit of ?$26.52 on every 20 dash year dash old 20-year-old female it insures for 1 month.
C. The insurance company expects to make an average profit of ?$291.72 on every 20 dash year dash old 20-year-old female it insures for 1 year.
D. The insurance company expects to make an average profit of ?$33.62 on every 20 dash year dash old 20-year-old female it insures for 1 month.
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Illustration on Eratosthenes' process
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