There is a 0.9986 probability that a randomly selected 27-year-old male lives through the year. A life insurance company charges $157 for insuring that the male will live through the year. If the male does not survive theyear, the policy pays out $80,000 as a death benefit. Complete parts(a) through(c) below.

a. From the perspective of the 27-year-old male, what are the monetary values corresponding to the two events of surviving the year and notsurviving?

The value corresponding to surviving the year is $

nothing

.

The value corresponding to not surviving the year is $

nothing

.

(Type integers or decimals. Do notround.)

b. If the 27-year-old male purchases thepolicy, what is his expectedvalue?

The expected value is $

nothing

.

(Round to the nearest cent asneeded.)

c. Can the insurance company expect to make a profit from many suchpolicies? Why?

because the insurance company expects to make an average profit of $

nothing on every 27-year-old male it insures for 1 year.