View the step-by-step solution to:

E STATISTICS AND PROBABILITY (ECON) Insert Design Layout References Mailings Review View ' A ' V V A v V A I ' ITImes New Ron. II12 I A A 7 A' Q?

Hi,


Can anybody help me with this question? I would greatly appreciate it! Thanks










STATS SC.png

STATS SC.png

E STATISTICS AND PROBABILITY (ECON) Insert Design Layout References Mailings Review View ©' A
' V V A v V A I '
ITImes New Ron. II12 I A A 7 A‘é Q? 72" fil Aagbcmdge AaBchDdEe AaBchDc AaBchDdEe AaBbC AthCchEE ’ o
paste 6 B 1 H v abe x2 X2 A v 9 v A v 1: v » » v Normal No Spacing Heading1 Headingz Title Subtitle Styles
— Pane I
‘ When calculating premiums on life insurance products insurance companies ofien
use life tables which enable the probability of a person dying in any age interval to be calculated. The following table gives the number out of 100,000 females who are still alive
during each five-year period of life between the age of 20 to 60 (inclusive): Out of 100,000 females born Exact age m Number alive at exact age
20 99,150
25 98,983
30 90,781
35 98,545
40 98,182
45 97,628
50 96,831
55 95,585
60 93,713 Suppose a W female on her 30th birthday purchases a one million dollar,
five-year term life policy from an insurance company. That is, the insurance
company must pay her estate $1 million if she dies within the next five years. (a) Determine the insurance company’s expected payout on this policy (b) What would be the minimum you would expect the insurance company to
charge her for this policy? Give a brief explanation of your answer (c) What would the expected payout be if the same policy were taken out by a
female on her 40th birthday? _‘/—+ 95% Page1of1 185Words D;< English (US)

Recently Asked Questions

Why Join Course Hero?

Course Hero has all the homework and study help you need to succeed! We’ve got course-specific notes, study guides, and practice tests along with expert tutors.

-

Educational Resources
  • -

    Study Documents

    Find the best study resources around, tagged to your specific courses. Share your own to gain free Course Hero access.

    Browse Documents
  • -

    Question & Answers

    Get one-on-one homework help from our expert tutors—available online 24/7. Ask your own questions or browse existing Q&A threads. Satisfaction guaranteed!

    Ask a Question