Concept explainers
In Exercises 1-5, we computed the
We want to compute the conditional probability
Using the definition of probability, we have
You computed P (Alive at age 20) in Exercise 2. Now we need to compute P(Alive at age 100 and Alive at age 20). The key is to realize that anyone who is awe at age 100 was also alive at age 20. Therefore,
Therefore,
In general: for
A life insurance company sells term insurance policies These policies pay $100,000 if the policyholder dies before age 70, but pay nothing if a person is still alive at age 70. If a person buys a policy at age 40, what is the probability that the insurance company does not have to pay?
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Chapter 5 Solutions
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- Calculus For The Life SciencesCalculusISBN:9780321964038Author:GREENWELL, Raymond N., RITCHEY, Nathan P., Lial, Margaret L.Publisher:Pearson Addison Wesley,College Algebra (MindTap Course List)AlgebraISBN:9781305652231Author:R. David Gustafson, Jeff HughesPublisher:Cengage LearningAlgebra & Trigonometry with Analytic GeometryAlgebraISBN:9781133382119Author:SwokowskiPublisher:Cengage
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