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The probability ofa 30-year old male living through the year is equal to 0.9986.

The insurance company charges $161 for one year and gives $100,000 on the death of a man.

a.

The monetary value of the event of surviving through the year is equal to -$161 as the charges of the insurance policy need to be paid.

Corresponding to the event of not surviving, any particular man will receive $100,000.

Therefore, the corresponding monetary value is equal to

$100,000-161=99,839\text{dollars}$

Thus, the monetary value for the event of not surviving is equal to $99,839.

b.

The expected value of purchasing the insurance policy is computed as follows.

$$\begin{gathered} \text{Expected}\text{value}=\left(\text{Net}\text{amount} \\ \text{received}\right)脳\left(\text{Probability}\text{of} \\ \text{not}\text{surviving}\right)-\left(\text{Net}\text{amount} \\ \text{given} \\ \right)脳\left(\text{Probability} \\ \text{of}\text{surviving}\right) \\ =\left(99839\right)\left(1-0.9986\right)-\left(161\right)\left(0.9986\right) \\ =-21\text{dollars} \end{gathered}$$

Thus, the expected value of purchasing an insurance policy is equal to -21 dollars.

c.

For each policy sold, the insurance company earns 21 dollars.

Therefore, the insurance company makes a lot of profit by selling many such policies.