There is a 0.9986 probability that a randomly selected 31-year-old male lives through the year. A life insurance company charges $175 for insuring that the male will live through the year. If the male does not survive the year, the policy pays out $100,000 as a death benefit. Complete parts (a) through (c) below. a. From the perspective of the 31-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 $ - 175. The value corresponding to not surviving the year is $ 99,825 (Type integers or decimals. Do not round.) b. If the 31-year-old male purchases the policy, what is his expected value? The expected value is S (Round to the nearest cent as needed.)

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There is a 0.9986 probability that a randomly selected 31-year-old male lives through the year. A life insurance company charges $175 for insuring that the male will live through the year. If the male does not survive the year, the policy pays out
$100,000 as a death benefit. Complete parts (a) through (c) below.
a. From the perspective of the 31-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 $ - 175
The value corresponding to not surviving the year is $ 99,825
(Type integers or decimals. Do not round.)
b. If the 31-year-old male purchases the policy, what is his expected value?
The expected value is $.
(Round to the nearest cent as needed.)
Transcribed Image Text:There is a 0.9986 probability that a randomly selected 31-year-old male lives through the year. A life insurance company charges $175 for insuring that the male will live through the year. If the male does not survive the year, the policy pays out $100,000 as a death benefit. Complete parts (a) through (c) below. a. From the perspective of the 31-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 $ - 175 The value corresponding to not surviving the year is $ 99,825 (Type integers or decimals. Do not round.) b. If the 31-year-old male purchases the policy, what is his expected value? The expected value is $. (Round to the nearest cent as needed.)
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