There is a 0.9985 probability that a randomly selected 30-year-old male lives through the year. A life insurance company charges $191 for insuring that the malewill live through the year. If the male does not survive the year, the policy pays out $120,000 as a death benefit. Complete parts (a) through (c) below. a. From the perspective of the 30-year-old male, what are the monetary values corresponding to the two events of surviving the year and not surviving?The value corresponding to surviving the year is $The value corresponding to not surviving the year is $(Type integers or decimals. Do not round.)b. If the 30-year-old male purchases the policy, what is his expected value?The expected value is $ c. Can the insurance company expect to make a profit from many such policies? Why?erbecause the insurance company expects to make an average profit of $ on every 30-year-old male it insures for 1 year.(Round to the nearest cent as needed.)

Solution: Given that, Probability of the 30-year old surviving the year = 0.9985 A life insurance…

There is a 0.9985 probability that a randomly selected 30-year-old male lives through the year. A life insurance company charges $191 for insuring that the male will live through the year. If the male does not survive the year, the policy pays out $120,000 as a death benefit. Complete parts (a) through (c) below