With a variable life insurance policy, the rate of return on the investment (i.e., the death benefit)

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With a variable life insurance policy, the rate of return on the investment (i.e., the death benefit) varies from year to year. A study of these variable return rates was published in International Journal of Statistical Distributions (Vol. 1, 2015). A transformed ratio of the return rates (x) for two consecutive years was shown to have a normal distribution, with m = 1.5 and s = .2. Use the standard normal table or statistical software to find the following probabilities.

a. P(1.3 < x < 1.6) .5328

b. P(x > 1.4) .6915

c. P(x < 1.5) .5

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Statistics For Business And Economics

ISBN: 9780134506593

13th Edition

Authors: James T. McClave, P. George Benson, Terry Sincich

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