Question: Expected Value for Life Insurance : There is a 0.9986 probability that a randomly selected 30 year old male lives through the year (based on data from the U.S. Department of Health and Human Services). A Fidelity life insurance company charges $161 for insuring that the male will live through the year. If the male does not survive the year, the policy pays out $100,000 as a death benefit.

1. From the perspective of the 30 year old male, what are the values corresponding to the two events of surviving the year and not surviving?
2. If a 30 year old male purchases the policy, what is his expected value?

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