SOLUTION: A​ 28-year-old man pays ​$162 for a​ one-year life insurance policy with coverage of $80,000. If the probability that he will live through the year is 0.999. what is the exp

Algebra ->  Probability-and-statistics -> SOLUTION: A​ 28-year-old man pays ​$162 for a​ one-year life insurance policy with coverage of $80,000. If the probability that he will live through the year is 0.999. what is the exp      Log On


   

Question 1143578: A​ 28-year-old man pays ​$162 for a​ one-year life insurance policy with coverage of $80,000. If the probability that he will live through the year is 0.999. what is the expected value for the insurance​ policy? Round to the nearest dollar.
Answer by Boreal(15235) About Me  (Show Source):
You can put this solution on YOUR website!
E(X)=-0.999(162)+80000(0.001)
=-161.84+80
=-81.84 or -$82.