The potential market represents all active duty military members, all veterans, and their families. Assume that according to the United States Department of Defense, as of December 31, 2014 there were 1,361,869 active duty personnel in all armed services. The veteran population totaled 21 million at the end of 2014. Assuming the average cost of life insurance is $660 per year and that potential customers purchase one policy per year, use the chain ratio method to calculate the market potential for life insurance in the military market. The number of buyers in the market can be estimated asD. (Round to the nearest whole number.)
The potential market represents all active duty military members, all veterans, and their families. Assume that according to the United States Department of Defense, as of December 31, 2014 there were 1,361,869 active duty personnel in all armed services. The veteran population totaled 21 million at the end of 2014. Assuming the average cost of life insurance is $660 per year and that potential customers purchase one policy per year, use the chain ratio method to calculate the market potential for life insurance in the military market. The number of buyers in the market can be estimated asD. (Round to the nearest whole number.)
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:The potential market represents all active duty military members, all veterans, and their families. Assume that according to the United States Department of Defense, as of December 31, 2014 there were 1,361,869
active duty personnel in all armed services. The veteran population totaled 21 million at the end of 2014. Assuming the average cost of life insurance is $660 per year and that potential customers purchase one policy
per year, use the chain ratio method to calculate the market potential for life insurance in the military market.
The number of buyers in the market can be estimated as
(Round to the nearest whole number.)
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