B) Find the expected value of the profit

Insurance: An Insurance company sells a 1-year term life Insurance policy to an 70-year-old woman. The woman pays a premium of $3500 . If she dies with I year, the company will pay $88,000 to her beneficiary. According to the U.S. Centers for Disease Control and Prevention, the probability that an 76-year-ol woman will be alive 1 year later is 0.9605 . Let-X be the profit made by the Insurance company. Part 1 of 2 (a) Find the probability distribution. The probability distribution is -84500 3500 P(x) |0.0395 0.9605 Alternate Answer: X -84,500 3500 P(x) 0.0395 0.9605 Part: 1 / 2 Part 2 of 2 (b) Find the expected value of the profit. Expected value of the profit is S X