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There is a 0.9987 probability that a randomly selected 33-year-old male lives through the year. A life Insurance company charges $161 for Insuring that the

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There is a 0.9987 probability that a randomly selected 33-year-old male lives through the year. A life Insurance company charges $161 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 benet. Complete parts (a) through ((2) below. a. From the perspective of the 33year-old male, what are the monetary values corresponding to the two events of surviving the year and not surviving? The value oorresponding to surviving the year Is 3- The value corresponding to not surviving the year is $ 89.839 . (Type integers or decimals. Do not round.) b. If the 33-yearold male purchases the policy. what is his expected value? The expected value is 51:]. (Round to the nearest cent as needed.) c. Can the insurance company expect to make a prot from many such policies? Why/P E because the insurance company expects to make an average prot of SD on every 33-year-old mate it insures fort year. (Round to the nearest cent as needed.)

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