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...
This project is of direct relevance to the concepts of a giant component in Sec. 8.4. The process consisting of percolation on a lattice is another paradigmatic model, which conceptually is of great...
The loop of Figure P27.43 is partially in a region where there is a $2.0-\mathrm{T}$ magnetic field pointing out of the page and partially in a region where there is a $1.0-\mathrm{T}$ magnetic...
Because of irreconcilable differences of opinion, a dissenting group within the management and board of directors of the Algo Company resigned and formed the Bevo Corporation to purchase a...
Your 3 year old nephew got into the workbench and mixed iron filings into a container with sugar and marbles. Explain the steps you would take to separate and recover each substance (use point form...
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...
For the leaning version of the study from the previous question: a. Statistic: How many times did Krieger choose the correct object? Out of how many attempts? Thus, what proportion of the time did...
What will be the start up plan and the financial plan for the following start up business: The restaurant concept incorporates four different cuisines, each having one signature dish along with at...
List, explain/define, and give a detailed example of the 5 conflict styles.
1. What is service innovation? What are some of the mechanisms that enterprises use to innovate their services? 2. What roles do you think information technology and information systems play in...
to the question 1, Explanation: Based on the previous diagnosis and emotional state of the employees, the following organizational interventions are recommended: a) Reorganize into project-focused...
Make announcements for employees in the company This is the case: There is "ABC Training" going on for 2 months and the company divides the training program into 2 part (new employee and refresher...
On July 23, Louie Company sold goods costing $3,000 on account for $4,500. The terms of the sale were n/30. Payment in satisfaction of $3,000 of this amount was received on August 17. Also on August...
What is a lobbyist in US? How did this term emerge?
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...
Provide Step by Step Instructions. Acme Corporation has been operating profitably since its creation in 1 9 9 8 . ?At the beginning of 2 0 2 2 , ?Acme acquired a 7 0 ?percent ownership in Beta...
Obj. 3, Obj. 4, 5 The comparative financial statements of Marshall Inc. are as follows. The market price of Marshall common stock was $82.60 on December 31, 20Y2. EXCEL TEMPLATE Marshall Inc....
A 1 B Name: D E F G H Your score: 0% 2 On January 1, 202 3 4 5 ? Company borrows $170,000 cash by signing a 2-year, 6%, installment note, with quarterly interest payments. 1) Calculate the amount of...

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