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5.28 Variable life insurance return rates. Refer to the International Journal of Statistical Distributions (Vol. 1, 2015) study of a variable life insurance policy, Exercise 4.97 (p. 239). Recall that a ratio (x) of the rates of return on the investment for two consecutive years was shown to have a normal distribution, with = 1.5 and o= .2. Consider a random sample of 100 variable life insurance policies and let represent the mean ratio for the sample. a. Find E(T) and interpret its value. (π) T:

5.28 Variable life insurance return rates. Refer to the International Journal of Statistical Distributions (Vol. 1, 2015) study of a variable life insurance policy, Exercise 4.97 (p. 239). Recall that a ratio (x) of the rates of return on the investment for two consecutive years was shown to have a normal distribution, with = 1.5 and o= .2. Consider a random sample of 100 variable life insurance policies and let represent the mean ratio for the sample. a. Find E(T) and interpret its value. (π) T:

Glencoe Algebra 1, Student Edition, 9780079039897, 0079039898, 2018
Glencoe Algebra 1, Student Edition, 9780079039897, 0079039898, 2018
18th Edition
ISBN:9780079039897
Author:Carter
Publisher:Carter
Chapter10: Statistics
Section10.5: Comparing Sets Of Data
Problem 13PPS
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5.28 Variable life insurance return rates. Refer to the International Journal of Statistical Distributions (Vol. 1, 2015) study of a variable life insurance policy, Exercise 4.97 (p. 239). Recall that a ratio (x) of the rates of return on the investment for two consecutive years was shown to have a normal distribution, with μ = 1.5 and o= .2. Consider a random sample of 100 variable life insurance policies and let a represent the mean ratio for the sample. a. Find E(T) and interpret its value. b. Find Var(x). c. Describe the shape of the sampling distribution of . d. Find the z-score for the value = 1.52. e. Find P(x > 1.52). f. Would your answers to parts a-e change if the rates (x) of return on the investment for two consecutive years was not normally distributed? Explain.
Transcribed Image Text:5.28 Variable life insurance return rates. Refer to the International Journal of Statistical Distributions (Vol. 1, 2015) study of a variable life insurance policy, Exercise 4.97 (p. 239). Recall that a ratio (x) of the rates of return on the investment for two consecutive years was shown to have a normal distribution, with μ = 1.5 and o= .2. Consider a random sample of 100 variable life insurance policies and let a represent the mean ratio for the sample. a. Find E(T) and interpret its value. b. Find Var(x). c. Describe the shape of the sampling distribution of . d. Find the z-score for the value = 1.52. e. Find P(x > 1.52). f. Would your answers to parts a-e change if the rates (x) of return on the investment for two consecutive years was not normally distributed? Explain.
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