A Life Insurance Company Wants to Estimate Its Annual Payouts

question 133

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 participants die before they reach the age of 65?

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Definitions:

Media Influence

The effect that media, such as television, internet, and advertising, have on the attitudes, behaviors, and values of the people who are exposed to it.

Information

A set of data or details about a specific topic that is conveyed or represented by someone or something.

Door-In-The-Face Technique

A compliance method involving first making a large request that is likely to be refused so that a smaller request, the actual desired outcome, is then more readily accepted.

Smaller Request

A lesser or more moderate appeal or plea, often used in techniques of persuasion or negotiation.