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?

(3) 1. How does a "census" differ from a population estimate ? (3) 2. List three types of "sign" indexes that are used to estimate the number of wild hogs (3) 3. List three advantages of using radio telemetry to locate wildlife (3) 4 What are the three basic equipment components necessary for radio-tracking animals?Consider the bivariate joint PDF of X and Y given by (c is some constant) fxy (u, v) = otherwise 1. Find the value of c. 2. Find p(X Sys 3. Find fy(v) the marginal distribution of Y. 4. Compute p(Y |Y = ) 9. Determine whether X and Y are independent.viformacidn Navega Marcar Problem 4. Read carefully the problem statement and provide your final answers on this page, Present your answers cuestic puregunda using three decimal points. To receive full credit for your final answers you must submit a scanned page(s) titled "Problem 4" that shows the definition of all the random variables and all your steps justifying your answers in your handwriting. Label your calculations as a and b to address each question. No need to write anything additional on paper for question c. If you wish to use an Excel function to solve a particular question, you can do so but remember to write the Excel function on the scanned pages. Progunis 5 In the manufacture of a chemical product, several different layers of ink are deposited onto the surface. The thickness of Sin responder these layers is critical if specifications regarding the final color are to be met. The thicknesses of two different layers of ink auin are considered random variables jointly distributed by the bivariate normal. Puntun come 20,000 It is known that the first layer has a mean of 0.15 millimeters and a standard deviation of 0.031 millimeters, and the second layer has a mean of 0.23 millimeters and a standard deviation of 0.17 millimeters. Also, the correlation among the layers is F Marcar 0.8. pregurita Specifications call for a product to have a thickness of the first layer in the range of 0.099 to 0.300 millimeters and for the second layer in the range of 0.230 to 0.250 millimeters (mm). a. What is the probability that a randomly selected product will conform to specifications on the first layer given that the second layer is equal to 0.25 millimeters? b. What is the covariance of both layers? c. Are the thickness of both layers independent? Why