Mike and Mary Jane Lee have a yearly income of $65,000 and own a house worth w' $90,000, two cars worth a total of $20,000, and furniture worth $10,000. The house IT has a mortgage of $50,000, and the cars have outstanding loans of $2,000 each. Utility bills, totaling $150 for this month, have not been paid. Calculate or use Worksheet 4 to determine their net worth, and explain what it means. How would the Lees' ages affect your assessment of their net worth?

An insurance company estimates the probability of an earthquake in the next year to be 0.0015. the average damage done to a house by an earthquake it estimates to be $90,000. if the company offers earthquake insurance for $150, what is company`s expected value of the policy? hint: think, is it profitable for the insurance company or not? will they gain (positive expected value) or lose (negative expected value)? if the expected value is negative, remember to show "-" sign. no "+" sign needed for the positive expected value