Mathematics, 06.11.2019 01:31 krystinayagel013
There is a 0.9988 probability that a randomly selected 30-year-old male lives through the year. a life insurance company charges $191 for ensuring 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 a 30 year old male, what are the monetary values corresponding to the two events of surviving the year and not surviving?
(b) if the 30 year old male purchased the policy, what is his expected value?
(c) can the insurance company expect to make a front from many policies? why? because the company expects to make an average of $ ? on every 32 year old male
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