document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=1069132>Question 1069132</A>: <I><SPAN STYLE=\"word-break: break-all;\"> A 28-year-old man pays $125 for a one-year life insurance policy with coverage of $140,000. If the probability that he will live through the year is 0.9994, to the nearest dollar, what is the man’s expected value for the insurance policy?\r<BR>\n" );
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document.write( "    A. $139,916<BR>\n" );
document.write( "    B. &#8722;$41<BR>\n" );
document.write( "    C. $84<BR>\n" );
document.write( "    D. &#8722;$124<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 #684368 by </B><A HREF=/tutors/aboutme.mpl?userid=Boreal><B>Boreal(15235)</B></A><img src=\"/images/stars/stars-13.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=Boreal><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/cgi-bin/show-face.mpl?user=Boreal><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=684368\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> E(x)=0.9994*-125=-$124.925, minus because he paid for it.<BR>\n" );
document.write( "add to that 140,000(.0006)=$84<BR>\n" );
document.write( "His loss is -$40.925 or -$41.  The insurance company's expected value is positive, which is why they sell it.<BR>\n" );
document.write( "B. </SPAN>\n" );
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