A life insurance company charges $1,500 for a $100,000 one-year term life insurance policy for a 60-year-old white male. If the insured lives, the company gains $1,500. If the insured dies, the company loses $98,500 (the $100,000 face value of the policy minus the $1,500 prepaid premium). estimates the probability of the insured’s death during the year is 0.012. o Instructions: (a) Calculate the company’s expected payout ($100,000 with a probability of 0.012, $0 with a probability of 0.988).