An insurance company offers a policy for a $100,000 in the case of death during a calendar year for its young customers. The cost of the policy is $250.
(A) If a young customer does not survive a calendar year with probability 0.0017 what is the average gain of the company per policy?
(B) Also suppose that the company issued 20000 such policies. What is the anticipated average gain per policy from these 20000 policies?
(C) What is the standard deviation of the average gain per policy from these 20000 policies?