Question: There is a 0.9988 probability that a randomly selected 29-year-old male lives through the year. A life insurance company charges $178 for insuring that the male will live through the year. If the male does not survive the year, the policy pays out $90,000 as a death benefit. Complete parts (a) through (c) below.

a. From the perspective of the 29-year-old male, what are the monetary values corresponding to the two events of surviving the year and not surviving? The value corresponding to surviving the year is $ enter your response here. The value corresponding to not surviving the year is $ enter your response here. (Type integers or decimals. Do not round.)

B:________________________

C:________________________

This is an example of what I am looking for:

a. From the perspective of the 35-year-old male, what are the monetary values corresponding to the two events of surviving the year and not surviving? From the point of view of the 35-year-old male, if they survive the year, they lose only what they paid for the policy. Thus, the value is $198. Part 2 Therefore, let x=$198 if the client survives the year. If the client dies during the year, the insurance company must pay $100,000 to the client's beneficiary. However, the company still keeps the $198. Thus, if the client dies, his net benefit is $100,000$198=$99,802. Part 3 b. If the 35-year-old male purchases the policy, what is his expected value? The mean of a random variable is also called the expected value, and is given by the formula below, where the random variable x represents all possible events in the entire sample space and P(x) denotes the probability of event x occurring. =[xP(x)] Part 4 There are two possible outcomes to the experiment: survival or death. Let the random variable X represent the payout (money lost or gained), depending on survival or death of the insured. First assign probabilities to each of these random variables. Part 5 The probability that the client survives is P(survives)=0.9981. Find P(dies) so that the probability distribution is valid. x P(event) survives 0.9981 dies 0.0019 Part 6 Assign the values found in part (a) for surviving or not surviving. See the probability distribution table. x P(event) $198 (survives) 0.9981 $99,802 (dies) 0.0019 Part 7 Obtain the mean or expected value of the policy by substituting these values into the formula [xP(x)], rounding to the nearest cent. x P(x) xP(x) $198 (survives) 0.9981 $197.62

$99,802 (dies) 0.0019 $189.62

Part 8 Now compute [xP(x)]. 197.62+(189.62)=$8.00 Part 9 Thus, the expected value of the policy for the 35-year-old male is $8.00. Part 10 c. Can the insurance company expect to make a profit from many such policies? Why? From the point of view of the insurance company, the expected value of the policy is $8.00. Part 11 Because the expected value of the policy is positive, the company can expect to profit on the policy. Part 12 Use this information to draw an appropriate conclusion about whether the company can expect to make a profit from many such policies.