Lab 4 - Math/Stat 170 Lab Project 4 Pricing a Term Policy...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Math/Stat 170 Lab Project 4 Pricing a Term Policy This project builds on Labs 2 and 3. In this Lab, we will assume that Purdue Life sells a 30 year term insurance policy with a death benefit of $10,000 and an annual premium of $100/year, payable on January 1. You will discover that $100 is too little to charge for this policy. In this project, you will estimate what the actual premium should be. As in Lab 3, you will use a mortality table to estimate the number of individuals dying each year. We will assume that all people die at the end of the year on December 31. We will compute a running total of the profit/loss for Purdue Life for the stated premium. We will then adjust the premium until our profit is as close to zero as possible. This tells us the minimum we should charge for this policy. A sample output is shown on the next page. Part 1: Your first assignment is to reproduce the sample output. Notes:
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 10/28/2010 for the course MA 170 taught by Professor Staff during the Fall '08 term at Purdue University-West Lafayette.

Page1 / 5

Lab 4 - Math/Stat 170 Lab Project 4 Pricing a Term Policy...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online