A company that sells annuities must face the annual payout on the probability distribution of life...
Homework Answers
Mean = 68
S.D. = 3.5
Z score at X = 70
Z = (X - μ) / σ
Z = (70 - 68) / 3.5
Z = 0.571
Z Score at X = 75
Z= (X - μ) / σ
Z = (75 - 68) / 3.5
Z = 2
P( 70< X < 75)= P(0.571 < Z < 2)
= P(Z < 2)- P( 0.571 < Z) = 0.2611
Add Answer to:
A
company that sells annuities must face the annual payout on the
probability distribution of life...
A company that sells annuities must base the annual payout on the probability distribution of the...
A company that sells annuities must base the annual payout on the probability distribution of the length of life of the participants in the plan. Suppose the probability distribution of the lifetimes of the participants is approximately a normal distribution with a mean of 68 years and a standard deviation of 3.5 years. a) What proportion of the plan recipients would receive payments beyond age 68? b) Find the age at which payments have ceased for approximately 97.5 % of...
23. Suppose a sample of n = 50 items is drawn from a population of manufactured...
23. Suppose a sample of n = 50 items is drawn from a population of manufactured products and the weight, X, of each item is recorded. Prior experience has shown that the weight has a probability distribution with 6 ounces and ơ-2.5 ounces. Which of the following is true about the sampling distribution of the sample mean if a sample of size 15 is selected? a) The mean of the sampling distribution is 6 ounces b) The standard deviation of...
For a life insurance company, it is important to construct life tables (consisting of the probability...
For a life insurance company, it is important to construct life tables (consisting of the probability that a person will survive in the next year, conditional on a person that has been survived up to current). A life insurance company uses life tables to assist calculation of life insurance premium. Assume that the lifetime of randomly selected person is approximately normally distributed with a mean 68 years and a standard deviation 4 year. A whole life insurance implies that insurance...
USING R- STUDIO: Along with interest rates, life expectancy is a component in pricing financial annuities....
USING R- STUDIO: Along with interest rates, life expectancy is a component in pricing financial annuities. Suppose that you know that last year life expectancy was 77 years for your annuity holders. Now you want to know if your clients this year have a longer life expectancy, on average, so you randomly sample n=20 of recently deceased annuity holders to see actual age at death. Using a 5% level of significance, test whether or not the new data shows evidence...
I. Assume that z is normally distributed with a specified mean and standard deviation. Find the...
I. Assume that z is normally distributed with a specified mean and standard deviation. Find the indicated probabilities: c, p(x 120); μ 100 ; ơ--15 2. Find z such that 28% of the standard normal curve lies to the right of z. 3. A person's blood glucose level and diabetes are closely related. Let x be a random variable measured in milligrams of glucose per deciliter of blood. After a 12- hour fast, the random variable x will have a...
Suppose the heights of 18-year-old men are approximately normally distributed, with mean 69 inches and standard...
Suppose the heights of 18-year-old men are approximately normally distributed, with mean 69 inches and standard deviation 4 inches. (a) What is the probability that an 18-year-old man selected at random is between 68 and 70 inches tall? (Round your answer to four decimal places.) (b) If a random sample of nineteen 18-year-old men is selected, what is the probability that the mean height x is between 68 and 70 inches? (Round your answer to four decimal places.) (c) Compare...
In a large Insurance Company in U.S., people over age thirty five have an annual income...
In a large Insurance Company in U.S., people over age thirty five have an annual income that follows a normal distribution with mean 70,000 and standard deviation 9,000. The incomes of those under age thirty five are also approximately normal, but with mean 45,000 and standard deviation 8,000. With the above information simulate 10000 employees over 35 and 10000 employees under 35 and answer the questions. 21. What is the approximate probability that a randomly picked, employee over 35 will...
A) The life spans of a species of fruit fly have a bell-shaped distribution, with a...
A) The life spans of a species of fruit fly have a bell-shaped distribution, with a mean of 30 days and a standard deviation of 55 days. (a) The life spans of three randomly selected fruit flies are 32 days, 26 days, and 43 days. Find the z-score that corresponds to each life span. Determine whether any of these life spans are unusual. (b) The life spans of three randomly selected fruit flies are 20 days, 40 days, and 35...
Please answer Q3 and Q4. Question 3 An insurance company offers a life insurance of $200...
Please answer Q3 and Q4.
Question 3 An insurance company offers a life insurance of $200 000 valid for one year. Its cost is $250. This insurance is available only for healthy people between 18 and 35 years old. According to the actuarial tables, the probability that someone of the given characteristics dies is of 0.05%. (a) Determine the expected value as well as the standard deviation for the gain obtained by selling one life insurance of this type. Interpret...
1) Answer the question True or False. 1) Nonparametric methods focus on the location of the...
1) Answer the question True or False. 1) Nonparametric methods focus on the location of the probability distribution, rather than on specific parameters of the population. A) True B) False 2) Nonparametric tests are useful for qualitative data that can be ranked. A) True B) False 3) The sign test provides inferences about the population median rather than the population mean. A) True B) False 4) For a sign test to be valid, a large sample must be selected from...
23. Suppose a sample of n = 50 items is drawn from a population of manufactured products and the weight, X, of each item is recorded. Prior experience has shown that the weight has a probability distribution with 6 ounces and ơ-2.5 ounces. Which of the following is true about the sampling distribution of the sample mean if a sample of size 15 is selected? a) The mean of the sampling distribution is 6 ounces b) The standard deviation of...
I. Assume that z is normally distributed with a specified mean and standard deviation. Find the indicated probabilities: c, p(x 120); μ 100 ; ơ--15 2. Find z such that 28% of the standard normal curve lies to the right of z. 3. A person's blood glucose level and diabetes are closely related. Let x be a random variable measured in milligrams of glucose per deciliter of blood. After a 12- hour fast, the random variable x will have a...
Suppose the heights of 18-year-old men are approximately normally distributed, with mean 69 inches and standard deviation 4 inches. (a) What is the probability that an 18-year-old man selected at random is between 68 and 70 inches tall? (Round your answer to four decimal places.) (b) If a random sample of nineteen 18-year-old men is selected, what is the probability that the mean height x is between 68 and 70 inches? (Round your answer to four decimal places.) (c) Compare...
In a large Insurance Company in U.S., people over age thirty five have an annual income that follows a normal distribution with mean 70,000 and standard deviation 9,000. The incomes of those under age thirty five are also approximately normal, but with mean 45,000 and standard deviation 8,000. With the above information simulate 10000 employees over 35 and 10000 employees under 35 and answer the questions. 21. What is the approximate probability that a randomly picked, employee over 35 will...
Please answer Q3 and Q4.
Question 3 An insurance company offers a life insurance of $200 000 valid for one year. Its cost is $250. This insurance is available only for healthy people between 18 and 35 years old. According to the actuarial tables, the probability that someone of the given characteristics dies is of 0.05%. (a) Determine the expected value as well as the standard deviation for the gain obtained by selling one life insurance of this type. Interpret...
1) Answer the question True or False. 1) Nonparametric methods focus on the location of the probability distribution, rather than on specific parameters of the population. A) True B) False 2) Nonparametric tests are useful for qualitative data that can be ranked. A) True B) False 3) The sign test provides inferences about the population median rather than the population mean. A) True B) False 4) For a sign test to be valid, a large sample must be selected from...
Most questions answered within 3 hours.
-
Calculate the volume integral of the function T=z^2 over the
tetrahedron with corners (0,0,0), (1,0,0), (0,1,0),...
asked 15 minutes ago -
I propose to you a game. You roll 2 dice. If the sum of the
numbers...
asked 1 hour ago -
Select the most likely lattice types for each of the following
salts: (a) BeF2; (b) CaO;...
asked 1 hour ago -
a
ball is thrown downward with velocity of 10m/s. calculate the final
velocity if it reaches...
asked 1 hour ago -
How many grams of ice at -15°C must be added to 705 grams of
water that...
asked 3 hours ago -
2. Balance sheet
The balance sheet provides a snapshot of the financial condition
of a company....
asked 3 hours ago -
In week 1 of the chemical equilibrium experiment, you and your
lab team will create a...
asked 4 hours ago -
Identify and describe five (5) characteristics of a good KM
measurement system. Be sure to include...
asked 4 hours ago -
What are at least five (5) workplace wellness best practices for
a successful wellness program? Explain...
asked 4 hours ago -
A pharmaceutical company is testing a new drug. Of the 110
people that received the drug,...
asked 4 hours ago -
Which of the following is NOT a mechanism for gene
regulation?
a. Phase variation in DNA....
asked 4 hours ago -
Which of the following is being applied when, under certain
conditions, the value recorded for an...
asked 4 hours ago