Question

The potential market represents all active duty military​ members, all​ veterans, and their families. Assume that according to the United States Department of​ Defense, as of December​ 31, 2014 there were

1 comma 361 comma 0771,361,077

active duty personnel in all armed services. The veteran population totaled 21 million at the end of 2014. Assuming the average cost of life insurance is

​$710710

per year and that potential customers purchase one policy per​ year, use the chain ratio method to calculate the market potential for life insurance in the military market.The number of buyers in the market can be estimated as

nothing.

​(Round to the nearest whole​ number.)

Enter your answer in the answer box and then click Check Answer.

Answer 1

Answer-

Given data:

• Total Active personnel are 1361077
• Total Veteran are 21000000
• Average cost of life insurance is $710

1. No. of buyers in the market = Total Active personnel + Total Veteran

No. of buyers in the market = 1361077+ 21000000 = 22,361,077

The number of buyers in the market can be estimated as 22361077.

2. The estimated market demand = no. of policy buyers * average cost of policy * policy per year

The estimated market demand = 22361077 * 710 * 1 = $15,876,364,670=$15876Million

The market demand is estimated as $15876 Million