A 25-year-old man in the U.S. has a 0.141% risk of dying during the next year. An insurance company charges $260 per year for a life-insurance policy that pays a $100,000 death benefit. a) What is the expected value for the customer buying the insurance? b) What is the expected value for the insurance company? Round your answers to the nearest cent if necessary. Be careful with negative signs. Expected Value for Customer: $ Expected Value (or expected profit on one customer) for the Insurance company: for the year Question Help: Video Submit Question for the year

MATLAB: An Introduction with Applications
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Chapter1: Starting With Matlab
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A 25-year-old man in the U.S. has a 0.141% risk of dying during the next year. An insurance company
charges $260 per year for a life-insurance policy that pays a $100,000 death benefit.
a) What is the expected value for the customer buying the insurance?
b) What is the expected value for the insurance company?
Round your answers to the nearest cent if necessary. Be careful with negative signs.
Expected Value for Customer: $
for the year
Expected Value (or expected profit on one customer) for the Insurance company:
$
for the year
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Transcribed Image Text:A 25-year-old man in the U.S. has a 0.141% risk of dying during the next year. An insurance company charges $260 per year for a life-insurance policy that pays a $100,000 death benefit. a) What is the expected value for the customer buying the insurance? b) What is the expected value for the insurance company? Round your answers to the nearest cent if necessary. Be careful with negative signs. Expected Value for Customer: $ for the year Expected Value (or expected profit on one customer) for the Insurance company: $ for the year Question Help: Video Submit Question
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