![[3 pts] A 64-year-old man in the US has a 0.0085 risk of dying during the next year. An insurance company charges $980 for a](http://img.homeworklib.com/questions/999eeb90-0ffd-11ec-8795-491696c74034.png?x-oss-process=image/resize,w_560)
Homework Answers
| Man dies | man lives | |
| x | 100000-980 = 99020 | 980 |
| P(X) | 0.0085 | 0.9915 |
| x*P(X) | 841.67 | 971.67 |
expected value for insurance company = Σx*P(X) = $1813.34
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