Life Insurance: On average about 9 out of 1,000 people die prematurely in the United States each year.
(a) If a life insurance company wants to sell $100,000 life insurance policies to the public, how much should it charge each client in order to at least break even?
(b) Using the answer from part (a), what is the probability that the company will make more than $500,000 profit per 1000 clients in a given year?