# Question: there is a 09989 probability that a randomly selected 33yearold...

###### Question details

There is a 0.9989 probability that a randomly selected 33-year-old male lives through the year. A life insurance company charges $145 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 33-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 33-year-old male purchases the policy, what is his expected value?The expected value is _______

(Round to the nearest cent as needed.)

c. Can the insurance company expect to make a profit from many such policies? Why?

_______ ( yes or no)because the insurance company expects to make an average profit of _______ on every 33-year-old male it insures for 1 year.

(Round to the nearest cent as needed.)