A life insurance company knows with certainty that all people will die someday. Does it make sense

Question:

A life insurance company knows with certainty that all people will die someday.

Does it make sense for the insurance company to use probability theory to set its life insurance rates?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Statistics For Business And Financial Economics

ISBN: 9781461458975

3rd Edition

Authors: Cheng Few Lee , John C Lee , Alice C Lee

See More Books

Question Posted: Feb 10, 2024 05:27 AM

See More Questions

From the attached article: 1) Introduction - Describe the case. What happened? When did that happen? Who got involved? 2) Identify the link between the case and global market changes?...
Read the following case study: Pandora is the Internets most successful radio service. As of May 2014, it had over 250 million registered users (200 million of which access the service via a mobile...
Read the following discussion: Pandora is the Internets most successful radio service. As of May 2014, it had over 250 million registered users (200 million of which access the service via a mobile...
Besides warehouse layout decisions, what are some other applications where ranking items according to bang/buck might make sense?
As a criminal justice supervisor, your time at work will pull you in several directions. Rank order the top six (6) duties you feel are important to a supervisor in order to meet the organization's...
Does elevation impact hitting performance in baseball? The Colorado Rockies play their major league home baseball games in Coors Field, Denver. Each year, the Rockies are among the leaders in team...
11. Let t = 1. What is E(St |St < $98)? What is E(St |St < $120)? How do both expectations change when you vary t from 0.05 to 5? Let = 0.1. Does either answer change? How?
The following were selected from among the transactions completed by Mair Co. during the current year. Mair Co. sells and installs home and business security systems. Jan. 10. Loaned $12,000 cash to...
GOODWILL IMPAIRMENT: QUESTION: On May 17, 2012, Warren Buffett's Berkshire Hathaway announced an offer to buy 63 newspapers from Media General Inc. for $142 million in cash and provide debt financing...
Consider the sample space S = {A, B, C, D, E, F, G} and the following events: Are the following sets of events mutually exclusive, collectively exhaustive, both, or neither? I = {A, C, E, G} II = {B,...
A car salesman meets 12 customers each week. His probability of making a sale in the first meeting with a customer is .3. When he gets the second meeting with the same customer, the probability of...
In Exercises find (a) a power function end behavior model and (b) any horizontal asymptotes. f(x) = 2x + 1 x - 2x + 1
REQUIRED: Cost of production report under the following assumptions: Lost units - normal, discovered at the beginning Lost units - normal, discovered at the end Lost units - abnormal, discovered when...
ABC, Inc., manufactures only two products: Gadget A and Gadget B. The firm uses a single, plant wide overhead rate based on direct-labor hours. Production and product-costing data are as follows:...
.Jean Saburit has gone over the financial statements for Saburit Parts, Inc. The income statement has been prepared on an absorption costing basis and Saburit would like to have the statement revised...
When a constant force is applied to an object, the acceleration of the object varies inversely with its mass. When a certain constant force acts upon an object with mass 2 kg, the acceleration of the...
Use the following for all 3 circuits. V1 = 9.0 V, V = 12.0 V R = 2.0 ohms, R = 4.0 ohms, R3 = 6.0 ohms, R4 = 8.0 ohms C1 = 3.0 C = 3.0 (a) Find I in circuit A (b) Find I1 in circuit B R w R3 V R R4...
Consider what frames of judgment Brent seems to be focused on. What other judgment frames would be useful in making the best decision in this case?
Read Case Study Google: Dont Be Evil Unless and answer the following: Why do you think Google was adamant about not wanting to supply information requested by the government concerning the Child...
The accompanying Venn diagram illustrates a sample space containing six sample points and three events, A, B, and C. The probabilities of the sample points are P(1) = .3, P(2) = .2, P(3) = .1, P(4) =...
The accompanying Venn diagram illustrates a sample space containing six sample points and three events, A, B, and C. The probabilities of the sample points are P(1) = .3, P(2) = .2, P(3) = .1, P(4) =...
The American Journal of Public Health (Jan. 2002) reported on a study of elderly wheelchair users who live at home. A sample of 306 wheelchair users, age 65 or older, were surveyed about whether they...
1,600 Balance Sheet The following is a list (in random order) of KIP International Products Company's December 31, 2019, balance sheet accounts: Additional Paid-In Capital on Preferred Stock $2,000...
Question 3 4 pts 9 x + 3 x 9 if x 0 Find a) lim f(x), b) lim, f(x), C), lim , f(x) if they exist. 3 Edit View Insert Format Tools Table : 12pt M Paragraph B IV A2 Tv
Mr. Geoffrey Guo had a variety of transactions during the 2019 year. Determine the total taxable capital gains included in Mr. Guo's division B income. The transactions included: 1. On January 1,...

A life insurance company knows with certainty that all people will die someday. Does it make sense

Question:

Step by Step Answer:

Yes it absolutely makes sense for the insurance company to use probability theory to set its life in...View the full answer

Statistics For Business And Financial Economics

Students also viewed these Business questions