Questions 4

There is a 0.9982 probability that a randomly selected 31-year-old male lives through the year. A life insurance company charges $184 for insuring that the male will live through the year. If the male does not survive the year, the policy pays out $90,000as a death benefit. Complete parts (a) through (c) below

. From the perspective of the 31-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 $___-184______

The value corresponding to not surviving the year is $_89816________

If the 31-year-old male purchases the policy, what is his expected value?

The expected value is $ ___________