What proportion of the participants die before they reach the age of 65?

A life insurance company wants to estimate its annual payouts. Assume that the probability distribution of the lifetimes of the participants is approximately a normal distribution with a mean of 68 years and a standard deviation of 4 years. What proportion of the participants die before they reach the age of 65?

Solutions

Expert Solution

mean = = 68

standard deviation = = 4

P(X< 65) = P[(X- ) / < (65-68) /4 ]

= P(z <-0.75 )

Using z table

= 0.2266

proportion=0.2266

orchestra answered 1 year ago

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