Teddy is considering buying flood insurance. the cost of flood insurance is $400 per year. teddy predicts that there is a 20% chance that his house will flood and estimates that a flood will cause $1,000 in damages. if he gets insurance and there's no flood damage, he will lose his $400. however, if he gets insurance and there is flood damage, the insurance company will pay $1,000 for the damages. since teddy only paid $400 for the insurance, he will essentially save himself $600. what is the expected value of savings/losses for teddy buying insurance?