Question

There is a 0.0087 probability that a randomly selected 30-yoar-old malo lives through the your A life insurance company charges $178 for insuring that the malo will livethrough the year. If the male does not survive the year, the policy pays out $80,000an a death benefit Completo parto (a) through (e) bolow.a. From tho porspective of the 30-year-old malo, what are the monetary valuon corrosponding to the two evento of surviving the year and not surviving?The value corresponding to surviving the year in sThe value corresponding to not surviving the yoor in s(Type Integers or decimals. Do not round.)

Answer 1

Answer:

The value corresponding to surviving the year is $ -178

The value corresponding to not surviving the year is $ 80000

Explanation:

If the male survives, he will pay $178 to the insurance company, and if the male doesn't survive, he will receive $80,000. So, from the male perspective, we have:

The value corresponding to surviving the year is $-178

The value corresponding to not surviving the year is $80,000