So i've been stuck on this for some time now. Ms. Hardsell, an insurance agent, offers a 1-year term life insurance policy to males in a particular age category. The cost of the insurance is $30 thousand dollars of coverage. According to actuarial tables, the probability that a male in this category will die within the next year is 0.005.
i) What is the expected gain for the insurer for each thousand dollars of coverage?
ii)If insurance is sold only in multiples of 1000 dollars and if the overheads for writing such a policy are $70, what is the minimum amount of insurance that Ms Hardsell should sell in a policy in order to have a positive expected gain? Do i use the binomial table to calculate expected gain or what?