A Company Must Decide Their Contribution to Their Pension Plan

question 134

Multiple Choice

A company must decide their contribution to their pension plan based on the probability distribution of the length of life of their retired employees. Suppose the probability distribution of the lifetimes of their employees is approximately a normal distribution with μ = 74 years and σ = 8.6 years.
-What percentage of their retired employees would receive payments beyond age 85?

• A)13.28%
• B)19.87%
• C)19.13%
• D)10.03%
• E)10.90%

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Definitions:

Memory Control Strategy

Techniques and methods used to enhance the ability to remember information, manage memories, or improve memory performance.

Operating Efficiency Hypothesis

The theory that business operations and processes can be optimized for performance and cost-efficiency, leading to improved profitability and competitiveness.

Retrieval Cues

Stimuli that aid the recall of information stored in the memory by making it easier to access.

Mnemonics

Memory aids, often involving patterns of letters, ideas, or associations, designed to assist in remembering information.