Answer:
-$173
Step-by-step explanation:
The expected value is the sum of products of payments and their respective probabilities.
He pays $243 with probability 1: (-$243)(1) = -$243
He receives $100,000 with probability 1 -0.9993: ($100,000)(0.0007) = $70
The expected value for the man is ...
-$243 +70 = -$173 . . . . a cost of $173
