There is a 0.9985 probability that a randomly selected 30-year-old male lives through the year. A life insurance company charges $191 for insuring that the malewill 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 30-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 30-year-old male purchases the policy, what is his expected value?The expected value is $ c. Can the insurance company expect to make a profit from many such policies? Why?erbecause the insurance company expects to make an average profit of $ on every 30-year-old male it insures for 1 year.(Round to the nearest cent as needed.)

Solution: Given that, Probability of the 30-year old surviving the year = 0.9985 A life insurance…

There is a 0.9985 probability that a randomly selected 30-year-old male lives through the year. A life insurance company charges $191 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

There is a 0.9985 probability that a randomly selected 30-year-old male lives through the year. A life insurance company charges $191 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 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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