A life insurer has created a special one-year term insurance policy for a pair of business people who travel to high risk locations. The insurance policy pays nothing if neither die in the year, $100,000 if exactly one of the two die, and $K > 0 if both die. The insurer determines that there is a probability 0.1 that at least one of the two will die during the year and a probability of 0.08 that exactly one of the two will die during the year. You are told that the standard deviation of the payout is $74,000. Find the expected payout for the year on this policy. Let q 2 (0; 1). The q-th percentile of a random variable having distribution function F is the smallest value m such that F(m)  q.