here is a 0.9985 probability that a randomly selected 29-year-old male lives through the year. A life insurance company charges $200 for insuring that the male will live through the year. he male does not survive the year, the policy pays out $120,000 as a death benefit. Complete parts (a) through (c) below. . From the perspective of the 29-year-old male, what are the monetary values corresponding to the two events of surviving the year and not surviving? he value corresponding to surviving the year is $. he value corresponding to not surviving the year is $[ Type integers or decimals. Do not round.) . If the 29-year-old male purchases the policy, what is his expected value? he expected value is $ Round to the nearest cent as needed.) . Can the insurance company expect to make a profit from many such policies? Why? because the insurance company expects to make an average profit of $| on every 29-year-old male it insures for 1 year. Round to the nearest cent as needed.)

MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
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Chapter1: Starting With Matlab
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a,b,c

There is a 0.9985 probability that a randomly selected 29-year-old male lives through the year. A life insurance company charges $200 for insuring that the male will live through the year. If
the male does not survive the year, the policy pays out $120,000 as a death benefit. Complete parts (a) through (c) below.
a. From the perspective of the 29-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 $.
The value corresponding to not surviving the year is $ .
Type integers or decimals. Do not round.)
b. If the 29-year-old male purchases the policy, what is his expected value?
The expected value is $.
(Round to the nearest cent as needed.)
c. Can the insurance company expect to make a profit from many such policies? Why?
V because the insurance company expects to make an average profit of $
on every 29-year-old male it insures for 1 year.
(Round to the nearest cent as needed.)
Transcribed Image Text:There is a 0.9985 probability that a randomly selected 29-year-old male lives through the year. A life insurance company charges $200 for insuring that the male will live through the year. If the male does not survive the year, the policy pays out $120,000 as a death benefit. Complete parts (a) through (c) below. a. From the perspective of the 29-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 $. The value corresponding to not surviving the year is $ . Type integers or decimals. Do not round.) b. If the 29-year-old male purchases the policy, what is his expected value? The expected value is $. (Round to the nearest cent as needed.) c. Can the insurance company expect to make a profit from many such policies? Why? V because the insurance company expects to make an average profit of $ on every 29-year-old male it insures for 1 year. (Round to the nearest cent as needed.)
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