Asked by Tasha Barnes on May 12, 2024
Verified
The probability that a 42-year -old man will die before his 43rd birthday is about 0.29%.If an insurance company insures 30,000 42-year -old men,how many are expected to die before their 43rd birthdays?
A) 9
B) 87
C) 870
D) 8,700
Mortality Table
A mortality table, or life table, is a statistical chart used in insurance to give the probability of death for people at different ages, helping in the assessment of risk.
- Master the methodology of mortality rate calculation and its relevance to insurance contexts.
Verified Answer
AR
Arianna RileyMay 16, 2024
Final Answer :
B
Explanation :
The expected value is equal to the probability of an event occurring multiplied by the number of trials.
Expected value = 0.29% * 30,000 = 87. Therefore, we can expect that 87 of the 30,000 42-year-old men will die before their 43rd birthdays.
Expected value = 0.29% * 30,000 = 87. Therefore, we can expect that 87 of the 30,000 42-year-old men will die before their 43rd birthdays.
Learning Objectives
- Master the methodology of mortality rate calculation and its relevance to insurance contexts.