Question

What would be the total expected cost to Big Rock Insurance over the years 60 through 64 (in dollars)

Answer 1

Answer: $‭4,262.5‬0

Step-by-step explanation:

The total expected cost would be the total expected values of the insurance given the probability that Jim might die.

= ∑expected value at 60,61, 62, 63, 64

= (0.01054 * 50,000) + (0.01447 * 50,000) + (0.01645 * 50,000) + (0.02068 * 50,000) + (0.02311 * 50,000)

= $‭4,262.5‬0