A non-life example): A builder offers lifetime fire protection for houses that he builds. Benefit is transferable on ownership transfer. Force of failure is 0.0005 and δ = 0.10. Payments are made immediately and all losses are total. Calculate: a. The expected value of the benefit for a $100,000 house. b. The builder has 150 houses (all $100,000) for which he offers the benefit. The builder plans to put aside sufficient funds such that there is a probability of 0.95 that the funds are sufficient to cover all losses. Calculate the total amount of funds set aside in reserve.