The expected value is equivalent to the current receivable payment minus any potential payouts. The insurance company is assured of the $320 payment they will receive. Then the probability that the female will not survive the year is 1 - 0.999647 = 0.000353. We multiply this probability by the value of $250,000 to get $88.25. Then we subtract $320 - $88.25 to get the expected value of $231.75.
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Hey!
What this question wants you to do is use PEDMAS, that is the order of operations, to get the answer.
P - Parentheses
E - Exponents
D - Division
M - Multipliation
A - Addition
S - Subtraction
So using PEDMAS, solve this problem by doing the operations first that come first, so you might want to start by solving 16 divided 2. (Division comes before multipliciation)