If a 60 year old buys a $1000 life insurance policy at a cost of $50 and has a probability of 0.954 of living to age 61 find the expectation of the policy until the person reaches 61. round your answer to the nearest cent.

The expectation of the policy until the person reaches 61 is of -$4.

Step-by-step explanation:

We have these following probabilities:

0.954 probability of a loss of $50.

1 - 0.954 = 0.046 probability of "earning" 1000 - 50 = $950.

Find the expectation of the policy until the person reaches 61.

Each outcome multiplied by it's probability, so:

The expectation of the policy until the person reaches 61 is of -$4.

what is all that apply?