document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=245933>Question 245933</A>: <I><SPAN STYLE=\"word-break: break-all;\"> A 28-year-old man pays $ 175 for a one-year life insurance policy with coverage of $140,000. If the probability that he will live through the year is 0.9993, what is the expected value for the insurance policy?\r<BR>\n" );
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document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #179662 by </B><A HREF=/tutors/aboutme.mpl?userid=stanbon><B>stanbon(75887)</B></A><img src=\"/images/stars/stars-13.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=stanbon><IMG SRC=http://www.algebra.com/images/aboutme-small.gif BORDER=0 alt=\"About Me\" VALIGN=MIDDLE></A>&nbsp;<IMG SRC=http://www.algebra.com/images/nopicture.jpg><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=179662\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> A 28-year-old man pays $ 175 for a one-year life insurance policy with coverage of $140,000. If the probability that he will live through the year is 0.9993, what is the expected value for the insurance policy? \r<BR>\n" );
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document.write( "Let the random variable track the value to the customer.<BR>\n" );
document.write( "Random number values: -$175, 140,000-175 = $139825<BR>\n" );
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document.write( "Corresponding Probabilities: 0.9993 and 0.0.0007<BR>\n" );
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document.write( "E(x) = (-175)(0.9993) + (139825)(0.0007) = -$77.00<BR>\n" );
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document.write( "Cheers,<BR>\n" );
document.write( "Stan H. </SPAN>\n" );
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