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There is 0.998456 probability that a randomly selected 30-year-old male lives through the year. A Fidelity life insurance company charges $87 for insuring that the
There is 0.998456 probability that a randomly selected 30-year-old male lives through the year. A Fidelity life insurance company charges $87 for insuring that the male will live through the year. If the male does not survive the year, the policy pays our $110,000 as a death benefit. If a 30-year-old male purchases the policy, what is his expected value?
A.- $17.16
B.- $144.45
C.- $27.16
D.$18.16
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