In this task, you will refer to these life tables published by the US government and find the probabilities of your eight potential clients surviving to the end of their policy periods. Make sure you use the appropriate life table for each individual.
Part A
What is the probability that Jacob, the newborn you’re considering for a 30-year policy, lives to be 30 years old? Jacob is a non-Hispanic white male, so look in table 14.
Part B
What is the probability that Carol, the 44-year-old you’re considering for a 20-year policy, lives to be 64 years old? Note that this is a conditional probability. Another way of saying this is, “What is the probability that Carol turns 64 years old given that she turns 44 years old?” Carol is a non-Hispanic black female, so look in table 18.
Part C
What is the probability that Geraldo, the 25-year-old you’re considering for a 30-year policy, lives to be 55 years old? Remember that Geraldo is a Hispanic male.