Question

There is a 0.9984 probability that a randomly selected 29-year-old male lives through the year. A life insurance company charges $185 for insuring that the male will live through the year. If the male does not survive the year, the policy pays out $90,000 as a death benefit. Complete parts (a) through (c) below a. From the perspective of the 29-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 s The value corrosponding to not surviving the year is s (Type integers or decimals. Do not round.)

Answer 1

a) Value corresponding to surviving the year = $ -185

Value corresponding to not surviving the year = $ (90000 - 185) = $ 89815