Presented below is the 2021 income statement and comparative balance sheet information for tiger enterprises. tiger enterprises income statement for the year ended december 31, 2021 ($ in thousands) sales revenue $ 12,000 operating expenses: cost of goods sold $ 4,400 depreciation expense 340 insurance expense 600 general and administrative expense 2,800 total operating expenses 8,140 income before income taxes 3,860 income tax expense (1,544 ) net income

An insurance company estimates the probability of an earthquake in the next year to be 0.0015. the average damage done to a house by an earthquake it estimates to be $90,000. if the company offers earthquake insurance for $150, what is company`s expected value of the policy? hint: think, is it profitable for the insurance company or not? will they gain (positive expected value) or lose (negative expected value)? if the expected value is negative, remember to show "-" sign. no "+" sign needed for the positive expected value