A Company That Sells Annuities Must Base the Annual Payout

question 151

Short Answer

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.What proportion of the plan recipients would receive payments beyond age 75?

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Definitions:

Parent Training Programs

Interventions designed to teach parents effective strategies to manage their children's behavior, improve parent-child interactions, and address various child developmental and behavioral issues.

Coercive Process

A process in relationships in which aversive reactions are used to control the behavior of another individual.

ODD / CD

ODD (Oppositional Defiant Disorder) / CD (Conduct Disorder) refer to related developmental disorders characterized by disruptive, impulsive, and antisocial behavior, with CD being more severe involving violating societal norms and rights of others.

Self-Control Behaviours

Actions undertaken by an individual to control impulses and resist short-term temptation in order to achieve longer-term goals.