Customer preferences are permissible with regard to ________

Refer to the payoff table. What is the expected value under certainty? Assume P(S1 ) = 0.5 and P(S2 ) = 0.25

A) $101.25 B) $103.33 C) $108.33 D) $116.25 E) $136.25

Marshall is interested in determining the cost per thousand of his life insurance policy. Which of the following will provide Marshall the most meaningful measure of the cost per thousand dollars per year of his life insurance?

A) the needs approach B) the traditional net cost method C) the human life value approach D) the surrender cost index