The Johnsons Change Their Life Insurance Coverage Harry and Belinda Johnson spend $20 per month on life insurance in the form of a premium on a $10,000, paid-at-65 cash-value policy on Harry that his parents bought for him years ago. Belinda has a group term i-surance policy from her employer with a face amount of $200,000. By choosing a group life insurance plan from his menu of employee benefits, Harry now has $100,000 of group term life insurance. Harry and Belinda have decided that, because they have no children, they could reduce their life insurance needs by protecting one another's income for only four years, assuming the survivor would be able to fend for himself or herself after that time. They also realize that their savings fund is so low that it would have no bearing on their life insurance needs. Harry and Belinda are basing their calculations on a projected 4 percent rate of return after taxes and inflation. They also estimate the following expenses: $15,000 for final expenses, $20,000 for readjustment expenses,

and $5,000 for repayment of short-term debts.

Requirement:

(a) Should the $3,000 interest earnings from Harry's trust fund be included in his annual income for the purposes of calculating the likely dollar loss if he were to die? (See the discussions about the Johnsons in Chapter 1 beginning on page 34.) Explain your response.

(b) Based on your response to the previous question, how much more life insurance does Harry need? Use the Run the Numbers worksheet on page 366 to arrive at your answer.

(c) Repeat the calculations to arrive at the additional life insurance needed on Belinda's life.

(d) How might the Johnsons most economically meet any additional life insurance needs you have determined they may have?

e) In addition to their life insurance planning, how might the Johnsons begin to prepare for their retirement years?

(2) 10. The "trapping web" and "variable circular plot" methods are both analyzed in program Distance as a point sample where animals further from the point are weighted less in the calculation of density than nearby animals because: a) animals can not be detected far from the point b) the areas of concentric rings increases with radial distance from the point c) the truncation function discounts animals that are far away animals fly or run away from the point because the observer is there e) a bird in the hand is worth two in the bush (2) 11. Population estimation programs that use data collected from transects utilize statistical procedures to fit a to the data in order to account for animals that were to distant from the transect to be detected a) variable circular plot b) probability density function c) change in ratio frequency index e) chi-square contingency tablePaleontology A. Is primarily an experimental science, much like physics and chemistry, but one that involves organisms. B Encourages paleontologists to document historical patterns and investigate the process of evolution. C. Relies fundamentally on both biology and geology, as well as chemistry, physics, and mathematics, D. B and C only. Regarding rocks: A. Depositional sedimentary processes generate a sedimentary record; erosion can remove that record. B. Sedimentary rocks are more likely to preserve fossils because they are older than igneous rocks C. The three major types of rocks are igneous, phosphatic, and sedimentary. D. None of the above Which of the following is true regarding biases in the fossil record? A. Organisms with mineralized shells are less likely to be preserved than those without shells. B. Most organisms that have ever lived are preserved as fossils. C. Abundant organisms, like snails, are more likely to be preserved than are rare organisms, like peregrine falcons D. A and C only. Individuals and morphometrics A Descriptions of fossils can take the form of words, pictures, or measurements. H. Morphometric methods can be used to characterize a single individual, or compare two individuals. C. Bivariate morphometrics compares two features, like length and width, D. All of the above. Allometry and isometry: A After taking the logarithmic transform of the allometric equation (Y = bX"), a = slope of the line that results, B. Heat loss, dependent on surface area per volume, scales isometrically in most organisms. C. Most organisms grow isometrically as they increase in size, D. A and B only Species: A Cladogenesis is a mode of speciation in the fossil record that can be thought of as a cline in time. B. Even using a biological species concept, most species are actually recognized on the basis of morphology C. Behavioral isolation is the most common isolating mechanism to enable speciation to occur D. None of the above