A construction company has to complete a project no later than three months from now or there will be significant cost overruns. The manager of the construction company believes that there are four possible values for the random variable X, the number of months from now it will take to complete this project: 2, 2.5, 3, and 3.5. The manager currently thinks that the probabilities of these four possibilities are in the ratio 1 to 2 to 4 to 2. That is, Pr(X=2.5) is twice as likely as Pr(X=2), Pr(X=3) is twice as likely as Pr(X=2.5) and Pr(X=3.5) = 1/2Pr(X=3).1

c

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i think because what else can be a sample of every member

all group life insurance is term insurance. actually it is annual renewable term and it is rated on the average age and claims experience of the entire group, which is called "experience rating." remember, this type of insurance has a 31-day grace period and is convertible to whole life upon leaving employment. a contributory group plan requires that both the employer and the employees pay part of the premium. at least 75% of those eligible must participate, so the group is sure to get most of the healthy employees as well as those that are sick.

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7

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