What is the expected value for the insurance company?
E(x) = 0.9986*161 + 0.0014*(-99839) = $21.00
Step-by-step explanation: Ur welcome
There is a 0.9986 probability that a randomly selected 30 year old male lives through the year. A life insurance company charges $161 for insuring that the male lives through the year. If the male does not survive the year, the policy pays out $100,000 as a death benefit.
