Hi,

Can anybody help me with this question? I would greatly appreciate it! Thanks

E STATISTICS AND PROBABILITY (ECON) Insert Design Layout References Mailings Review View ' A ' V V A v V A I ' ITImes New Ron. II12 I A A 7 A' Q? 72" l Aagbcmdge AaBchDdEe AaBchDc AaBchDdEe AaBbC AthCchEE ' o paste 6 B 1 H v abe x2 X2 A v 9 v A v 1: v v Normal No Spacing Heading1 Headingz Title Subtitle Styles Pane I ' When calculating premiums on life insurance products insurance companies oen use life tables which enable the probability of a person dying in any age interval to be calculated. The following table gives the number out of 100,000 females who are still alive during each ve-year period of life between the age of 20 to 60 (inclusive): Out of 100,000 females born Exact age m Number alive at exact age 20 99,150 25 98,983 30 90,781 35 98,545 40 98,182 45 97,628 50 96,831 55 95,585 60 93,713 Suppose a W female on her 30th birthday purchases a one million dollar, ve-year term life policy from an insurance company. That is, the insurance company must pay her estate $1 million if she dies within the next ve years. (a) Determine the insurance company's expected payout on this policy (b) What would be the minimum you would expect the insurance company to charge her for this policy? Give a brief explanation of your answer (c) What would the expected payout be if the same policy were taken out by a female on her 40th birthday? _'/+ 95% Page1of1 185Words D;