statistics - math

Question

life insurance policy pays $190000 if a customer passes away during the year.at start of each year a customer pays $340 for insurance.assume that in any year a certain population has 165 fatalities per 100000.what is expected value of a single one of these customers for insurance company(for one year)

Answer 1

EV = x P(x)

x	P(x)	EV=x P(x)
190,000-340=189660	(165/100000)=. .00165	312.94
-340	(100000-165)/100000= .99835	-339.44
	EV (sum)=	-$26.50

Therefore the EV of each of these customers in a year for the insurance company is $26.50.