an insurance company says that at age 50 one must chose to take $10,000 at age 60, $30,000 at 70, or $50,000 at 80 ($0 death benefit). The probability of living from 50 to 60 is 0.85, from 50 to 70, 0.69, and from 50 to 80, 0.4. find the expected value at each age.
Contingency Table
A contingency table can be defined as the visual representation of the relationship between two or more categorical variables that can be evaluated and registered. It is a categorical version of the scatterplot, which is used to investigate the linear relationship between two variables. A contingency table is indeed a type of frequency distribution table that displays two variables at the same time.
Binomial Distribution
Binomial is an algebraic expression of the sum or the difference of two terms. Before knowing about binomial distribution, we must know about the binomial theorem.
an insurance company says that at age 50 one must chose to take $10,000 at age 60, $30,000 at 70, or $50,000 at 80 ($0 death benefit). The probability of living from 50 to 60 is 0.85, from 50 to 70, 0.69, and from 50 to 80, 0.4. find the
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 2 images
