Suppose a life insurance company sells a $290,000 one-year term life insurance policy to a 19-year-old female for $310. The probability that the female survives the year is 0.999636. Compute and interpret the expected value of this policy to the insurance company.

The expected value is $

nothing

.

(Round to two decimal places asneeded.)

Which of the following interpretation of the expected value iscorrect?

A.

The insurance company expects to make an average profit of $28.17 on every 19-year-old female it insures for 1 month.

B.

The insurance company expects to make an average profit of $204.44 on every 19-year-old female it insures for 1 year.

C.

The insurance company expects to make an average profit of $309.89 on every 19-year-old female it insures for 1 year.

D.

The insurance company expects to make an average profit of $18.59 on every 19-year-old female it insures for 1 month.