# A 28-year-old man pays $165 for a one-year life insurance policy with coverage of$140000. If the probability that he will live through the year is 0.994, what is the expected value of the insurance policy?

Nov 2, 2015

$675.99 #### Explanation: Here, the insurance premium paid is$165.
The company earns $165 with probability 0.994 and pays out$140000 with probability .006.