I know that this is not right place to ask this question. Still post it. Hope some one can answer my question.
John (in good health) just turned 64 and wants to take out a $50,000 term life insurance policy for a year. The probability of death by such a male in their 64th year is 0.01035.
-------- If john is charges $600 for this policy and x=the profit/loss to the insurance company, find the probablity distribution for x.
-------- What is the expected value of this policy?
-------- If the insurance company wants to make an average profit of $500 on all such policies, what should the premium be?