Choose the One Alternative That Best Completes the Statement or Answers

question 239

Multiple Choice

Choose the one alternative that best completes the statement or answers the question.
-A life insurance company uses the following rate table for annual premiums for women for term life insurance. Use a graphing utility to fit an exponential function to the data. Predict the annual premium for a woman aged 70 years.
$\begin{array}{l|lllllll}\text { Age } & 35 & 40 & 45 & 50 & 55 & 60 & 65 \\\hline \text { Premium } & \$ 103 & \$ 133 & \$ 190 & \$ 255 & \$ 360 & \$ 503 & \$ 818\end{array}$

• A) \(y = 0.0000398 x ^ { 4.06 } , \$ 1233\)
• B) \(y = 8.94 \mathrm { e } ^ { 0.068 x , } \$ 1044\)
• C) \(y = 6.367 \mathrm { e } ^ { 0.068 \mathrm { x } } , \$ 743\)
• D) \(y = - 9306.4 + 2516.3 \ln ( x ) , \$ 1723\)

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Definitions:

Return on Assets

A financial ratio that measures the profitability of a company in relation to its total assets.

Earnings Per Share

A profitability measure that calculates the amount of net income earned per share of a company's outstanding stock.

Price-Earnings Ratio

The price-earnings ratio (P/E ratio) measures a company's current share price relative to its per-share earnings, indicating the value that investors place on a company's earning power.

Days Sales Outstanding

A measure of the average number of days it takes a company to collect payment after a sale has been made, indicating the effectiveness of its credit and collections policies.