A woman purchased a $10,000, 1-year term-life insurance policy for $150. Assuming that the probability that she will live another year is 0.993, find the company's expected gain.

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The company's expected gain is calculated as follows: The woman pays $150 for the policy. If she lives, the company keeps the $150. If she dies, the company pays out $10,000. The probability she lives is 0.993, and the probability she dies is 0.007. The expected gain is $150 * 0.993 - $10,000 * 0.007 = $80.

A Woman Purchased a $10,000, 1-Year Term-Life Insurance Policy for $150