A Life Insurance Company Wants to Estimate Its Annual Payouts

question 136

Short Answer

A life insurance company wants to estimate its annual payouts. Assume that 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 4 years. What proportion of the plan recipients would receive payments beyond age 75?

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Definitions:

Repression

A defense mechanism where unwanted thoughts and desires are unconsciously pushed out of conscious awareness.

Resistance

In psychology, an individual's unconscious defense mechanisms that hinder the progress of therapy or change by opposing the uncovering of unconscious material.

Systematic Desensitization

A behavior therapy technique used to reduce phobias and anxieties by gradually exposing individuals to the feared object or situation while teaching relaxation strategies.

Free-Associate

The psychoanalytic process of spontaneously expressing thoughts, feelings, or impulses without censorship, often revealing unconscious material.