Which of the Following Refers to the Average Number of Years

question 50

Multiple Choice

Which of the following refers to the average number of years a person can expect to live without chronic disability?

• A) Independent life expectancy
• B) Active life expectancy
• C) Healthy life span
• D) Functional life expectancy

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Definitions:

Von Neumann-Morgenstern Utility Function

A utility function that assumes individuals can rank their preferences under uncertainty, used in expected utility theory to describe choices.

Insurance

A financial product that provides protection against financial loss or harm, in exchange for the payment of a premium.

Probability

A numeric representation ranging from 0 to 1 that describes the chance of an event taking place, where 0 is an event that won't occur and 1 is an event that is guaranteed.

Utility Function

A mathematical representation in economics that captures how consumers allocate their expenditure to maximize satisfaction or utility from goods and services.