document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=1170763>Question 1170763</A>: <I><SPAN STYLE=\"word-break: break-all;\"> A 40-year-old man in the U.S. has a 0.245% risk of dying during the next year. An insurance company charges $250 per year for a life-insurance policy that pays a $100,000 death benefit. What is the expected value for the person buying the insurance? Round your answer to the nearest cent. Be careful with negative signs. \r<BR>\n" );
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document.write( "Expected Value: $ for the year </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #795648 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=795648\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> amount lost is 250*0.99755 probability of not dying=-$249.39<BR>\n" );
document.write( "amount gained is 100,000*0.00245=+$245<BR>\n" );
document.write( "the expected value is the difference or -$4.39,  It should be minus for the insurance company to do it. </SPAN>\n" );
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