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There is a 0.9983 probability that a randomly selected 28-year-old male lives through the year. A life insurance company charges $179 for insuring that the
There is a 0.9983 probability that a randomly selected 28-year-old male lives through the year. A life insurance company charges $179 for insuring that the male will live through the year. If the male does not survive the year, the policy pays out $100,000 as a death benet. Complete parts (a) through (0) below. E) a. From the perspective of the 28-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 $ - 179 . The value corresponding to not surviving the year is $ 99,821 . (Type integers or decimals. Do not round.) b. If the 28-year-old male purchases the policy, what is his expected value? The expected value is $l:|. (Round t0 the nearest cent as needed)
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