A 36 year old man in the United States has a 0.215% risk of dying during the next year. An insurance company charges a premium of $444 for a life insurance policy that pays a $215,047 death benefit. What is the expected gain or loss to the man when purchasing the insurance policy? Note: Please avoid rounding numbers in the middle of your calculations. However, round your final answer to two decimal places, before entering it in the box below. A negative final answer indicates an expected loss for purchasing the policy.

A 36 year old man in the United States has a 0.215% risk of dying during the next year. An insurance company charges a premium of $444 for a life insurance policy that pays a $215,047 death benefit. What is the expected gain or loss to the man when purchasing the insurance policy? Note: Please avoid rounding numbers in the middle of your calculations. However, round your final answer to two decimal places, before entering it in the box below. A negative final answer indicates an expected loss for purchasing the policy.

A First Course in Probability (10th Edition)

10th Edition

ISBN:9780134753119

Author:Sheldon Ross

Publisher:Sheldon Ross

Chapter1: Combinatorial Analysis

Section: Chapter Questions

Problem 1.1P: a. How many different 7-place license plates are possible if the first 2 places are for letters and...

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Question

A 36 year old man in the United States has a 0.215% risk of dying during the next year. An insurance company charges a premium of $444 for a life insurance policy that pays a $215,047 death benefit. What is the expected gain or loss to the man when purchasing the insurance policy?

Note: Please avoid rounding numbers in the middle of your calculations. However, round your final answer to two decimal places, before entering it in the box below. A negative final answer indicates an expected loss for purchasing the policy.

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