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? b. If the 31-year-old male purchases the policy, what is his expected value? c. Can the insurance company expect to make a profit from many such policies? Why? 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 $The value corresponding to not surviving the year is $(Type integers or decimals. Do not round.)

The value corresponds to surviving the year is = charges incurred by the man for taking life…

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? he value corresponding to surviving the year is $ he value corresponding to not surviving the year is $. Type integers or decimals. Do not round.)

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? he value corresponding to surviving the year is $ he value corresponding to not surviving the year is $. Type integers or decimals. Do not round.)

Holt Mcdougal Larson Pre-algebra: Student Edition 2012

1st Edition

ISBN:9780547587776

Author:HOLT MCDOUGAL

Publisher:HOLT MCDOUGAL

Chapter7: Percents

Section7.7: Simple And Compound Interest

Problem 1E

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Question

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? b. If the 31-year-old male purchases the policy, what is his expected value? c. Can the insurance company expect to make a profit from many such policies? Why?

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 $
The value corresponding to not surviving the year is $
(Type integers or decimals. Do not round.)

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