Insurance companies make bets. They bet that you’re going to live a long life. An insurance company offers a “death and disability” policy that pays average of $10,000 when you die with a standard deviation of $1,000 or pays average $5000 if you are permanently disabled with standard deviation of $1,000.  Assuming the distribution of the policy payout is normal. What percentage of pay will lie between payout of $7,000 and $9,000 when you die? What percentage of the payout will lie below $7,500 if you are permanently disabled? What percentage of the policy will lie above $8,100 when you die?

MATLAB: An Introduction with Applications
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Insurance companies make bets. They bet that you’re going to live a long life. An insurance company offers a “death and disability” policy that pays average of $10,000 when you die with a standard deviation of $1,000 or pays average $5000 if you are permanently disabled with standard deviation of $1,000.  Assuming the distribution of the policy payout is normal.

  1. What percentage of pay will lie between payout of $7,000 and $9,000 when you die?
  2. What percentage of the payout will lie below $7,500 if you are permanently disabled?
  3. What percentage of the policy will lie above $8,100 when you die?
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