Life Insurance Miranda decided to buy a $50,000 term life insurance policy from Palmetto Insurance Company to cover her until she is 55. She is currently 50 years old and in good health. The probability of death in a given year is provided by the Social Security Actuarial Life Table. x = Age 50 51 52 53 54 P(Death at a Given Age) 0.0032 0.0035 0.0038 0.0041 0.0044 1. Fill in the expected cost to Palmetto Insurance Company for each year Miranda has the policy. Age at Death 50 51 52 53 54 Expected Cost $ $4 24 $ 2. The insurance company wants to make a profit of $500. How much would they need to charge for the policy? $ Check
Life Insurance Miranda decided to buy a $50,000 term life insurance policy from Palmetto Insurance Company to cover her until she is 55. She is currently 50 years old and in good health. The probability of death in a given year is provided by the Social Security Actuarial Life Table. x = Age 50 51 52 53 54 P(Death at a Given Age) 0.0032 0.0035 0.0038 0.0041 0.0044 1. Fill in the expected cost to Palmetto Insurance Company for each year Miranda has the policy. Age at Death 50 51 52 53 54 Expected Cost $ $4 24 $ 2. The insurance company wants to make a profit of $500. How much would they need to charge for the policy? $ Check
College Algebra (MindTap Course List)
12th Edition
ISBN:9781305652231
Author:R. David Gustafson, Jeff Hughes
Publisher:R. David Gustafson, Jeff Hughes
Chapter8: Sequences, Series, And Probability
Section8.CR: Chapter Review
Problem 77E
Related questions
Concept explainers
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.
Topic Video
Question
Transcribed Image Text:Life Insurance
Miranda decided to buy a $50,000 term life insurance policy from Palmetto Insurance Company to cover her
until she is 55. She is currently 50 years old and in good health. The probability of death in a given year is
provided by the Social Security Actuarial Life Table.
x = Age
50
51
52
53
54
P(Death at a Given Age) 0.0032 0.0035 0.0038 0.0041 0.0044
1. Fill in the expected cost to Palmetto Insurance Company for each year Miranda has the policy.
Age at Death
50
51
52
53
54
Expected Cost $
$
2$
2$
$
2. The insurance company wants to make a profit of $500. How much would they need to charge for the
policy? $
Check
Finish attemnt.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 4 steps with 2 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, probability and related others by exploring similar questions and additional content below.Recommended textbooks for you
College Algebra (MindTap Course List)
Algebra
ISBN:
9781305652231
Author:
R. David Gustafson, Jeff Hughes
Publisher:
Cengage Learning
Holt Mcdougal Larson Pre-algebra: Student Edition…
Algebra
ISBN:
9780547587776
Author:
HOLT MCDOUGAL
Publisher:
HOLT MCDOUGAL
College Algebra (MindTap Course List)
Algebra
ISBN:
9781305652231
Author:
R. David Gustafson, Jeff Hughes
Publisher:
Cengage Learning
Holt Mcdougal Larson Pre-algebra: Student Edition…
Algebra
ISBN:
9780547587776
Author:
HOLT MCDOUGAL
Publisher:
HOLT MCDOUGAL
College Algebra
Algebra
ISBN:
9781305115545
Author:
James Stewart, Lothar Redlin, Saleem Watson
Publisher:
Cengage Learning