A company that sells annuities must base the annual payout on the probabilitydistribution of the length of life of the participants in the plan. Suppose theprobability distribution of the lifetimes of the participants is approximately a normaldistribution with a mean of 68 years and a standard deviation of 3.5 years.1. What proportion of the plan recipients would receive payments beyond age75?2. What proportion of the plan recipients die before they reach the standardretirement age of 65?3. Find the age at which payments have ceased for approximately 86% of theplan participants (meaning they are no longer with us).Enter the correct answers in order in the boxes below.Enter all probability solutions in decimal form rounded to 4 decimal places. Enter allinverse probability solutions in decimal form rounded to 2 decimal places (these are x-values).Blank # 1Blank # 2Blank # 3

1. The proportion of the plan recipients would receive payment beyond age 75 is obtained as shown…

Answered: A company that sells annuities must…

MATLAB: An Introduction with Applications

6th Edition

ISBN:9781119256830

Author:Amos Gilat

Publisher:Amos Gilat

Chapter1: Starting With Matlab

Section: Chapter Questions

Problem 1P

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Similar questions

On average, TV crash after 17,000 hours of continuous use. Although the time for the TV to crash is random, researchers have found that the duration until the TV crashes follows an exponential probability distribution. a. What is the mean and standard deviation of the duration of the TV crash?b. What is the probability of a TV crash with a duration of use between 17,000 and 50,000 hours?
The waiting time at a railroad crossing follows an exponential distribution, with an average time of 8 minutes, determining the probability of waiting between 2 and 5 minutes.
A young investment manager tells his client that the probability of making a positive return with his suggested portfolio is 84%. If it is known that returns are normally distributed with a mean of 4.1%, what is the risk, measured by standard deviation, that this investment manager assumes in his calculation?
Suppose the mean income of firms in the industry for a year is $25 million with a standard deviation of $9 million. If incomes for the industry are distributed normally, what is the probability that a randomly selected firm will earn less than $34 million? Round your answer to four decimal places
0.33 0.41 0,22 0.17
Assume monthly returns of 1%, -2%, 3% and 1%. What is periodic arithmetic mean, geometric mean, standard deviation, skew and kurtosis? What are the annualized values of each statistic?
The average student loan debt for college graduates is $25,600. Suppose that that distribution is normal and that the standard deviation is $11,400. Let X = the student loan debt of a randomly selected college graduate. Round all probabilities to 4 decimal places and all dollar answers to the nearest dollar.b Find the probability that the college graduate has between $13,550 and $33,450 in student loan debt. c. The middle 10% of college graduates' loan debt lies between what two numbers? Low: $ High: $
The lifetime of an automobile voltage regulator follows an exponential distribution with a mean lifetime of 8 years.Answer the following questions. a. What is the probability that the regulator will last between 6.0 and 9.0 years? b. What is the time that delimits 85% of the regulators with the shortest lifetimes? c. What is the probability that the regulator will last less than 5.5 or more than 6.5 years?
On average, TV crash after 109,000 hours of continuous use. Although the time for the TV to crash is random, researchers have found that the duration until the TV crashes follows an exponential probability distribution. e. What is the probability of a TV crash with a duration of use between 17,000 and 50,000 hours?f. What is the mean and standard deviation of the duration of the TV crash?
The number of days ahead of their trip that travelers purchase their airline tickets can be modeled as an exponential distribution with a mean of 12 days. a. Determine the probability that a traveler will purchase their ticket less than 25 days before their trip Answer in exact fraction, or rounded to at least 4 decimal places. b. Determine the 77 percentile number of days by which travellers make an advance purchase of their tickets. Answer in exact fraction, or rounded to at least 4 decimal places. days
4. The time between calls to a plumbing supply business is exponentially distributed with a mean time between calls of 15 minutes. What is the probability that there are no calls within a 30-minute interval?
Suppose that the commuting time on a particular train is uniformly distributed between 35 and 55 minutes. What is the standard deviation of the commuting time?

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