For a fully discrete whole life insurance of 100,000 on each of 10,000 indepen- dent lives age 60, you are given the following values from the life table, A60 = 0.36913,2 A60 = 0.17741, i = 0.06. Let π be the annual premium for each insurance policy. (a) Use the normal approximation, calculate π, such that the probability of a positive total loss is 1%, given Φ0.99 = 2.326.

For a fully discrete whole life insurance of 100,000 on each of 10,000 indepen- dent lives age 60, you are given the following values from the life table, A60 = 0.36913,2 A60 = 0.17741, i = 0.06. Let π be the annual premium for each insurance policy. (a) Use the normal approximation, calculate π, such that the probability of a positive total loss is 1%, given Φ0.99 = 2.326.

A First Course in Probability (10th Edition)

10th Edition

ISBN:9780134753119

Author:Sheldon Ross

Publisher:Sheldon Ross

Chapter1: Combinatorial Analysis

Section: Chapter Questions

Problem 1.1P: a. How many different 7-place license plates are possible if the first 2 places are for letters and...

See similar textbooks

Similar questions

Determine the equation of the normal line at the given x-value. 1) g(x) = sinx , x = 3? 4 2) f(x) = 3x3 − 2x + 5 , x = −2
Find (a) the mean of the distribution, (b) the standard deviation of the distribution, and (c) the probability that the random variable is between the mean and 1 standard deviation above the mean The length of time (in years) until a particular radioactive particle decays is a random variable t with probability density function defined by ƒ(t) = 4e-4t for t in [0, ∞].
A train’s arrival time at the station is T minutes past noon, where the PDF of T is given below. Given that the train hasn’t arrived by 12:05, what is the probability that it arrives by 12:10?
X follows a gamma distribution with PDF f(x) = 4xe-2x , where X > 0(a) Derive E(Xn ).
Assume the time required to fully recharge an electric car is uniformly distributed between 160 and 220 minutes. What is the expected charge time, E(x)?
Consider the joint PDF f(x,y)=4xy for 0<x<1 and 0<y<1. (a) Are X and Y independent?(b) Find both marginal distributions. (c) Find both conditional distributions.
Find the pdf of e^x in terms of the pdf of X, base the answer to the case where X is uniformly distributed between 0 and 1
Let X and Y are independent and both have exponential distribution,Find ??(?) , if Z=X+Y. Where PDF of X and Y are given as,??(?) = ??−???(?) and ??(?) = ??−???(?).
Determine the equation of the normal line at the given x-value. 1) g(x) = x5, x = 2 2) f(x) = 3x3 − 2x + 5, x = −2
If the probability mass function of the variable X described in the table is. find variance Y=x^2+4x If you know that the torque is of the second order of the variable X about the origin is equal to 2.85
For an exponential random variable (X) having θ = 4 and pdf given by: f(x) = (1/θ)e^(−x/θ ) where x ≥ 0, compute the following: a) E(X). b) Var(X). c) P(X > 3).
A CI is desired for the true average stray-load loss ? (watts) for a certain type of induction motor when the line current is held at 10 amps for a speed of 1500 rpm. Assume that stray-load loss is normally distributed with ? = 2.2. (Round your answers to two decimal places.) (a) Compute a 95% CI for ? when n = 25 and x = 53.7. , watts(b) Compute a 95% CI for ? when n = 100 and x = 53.7. , watts(c) Compute a 99% CI for ? when n = 100 and x = 53.7. , watts(d) Compute an 82% CI for ? when n = 100 and x = 53.7. , watts(e) How large must n be if the width of the 99% interval for ? is to be 1.0? (Round your answer up to the nearest whole number.)n = You may need to use the appropriate table in the Appendix of Tables to answer this question.