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6. Life insurance: A life insurance company wants to estimate the probability that a 40 year...

6. Life insurance: A life insurance company wants to estimate the probability that a 40 year old male will live through the next year. In a random sample of 80.000 such men, 79.968 lived through the year. Using the relative frequency approximation, what is the probability that a randomly selected 40 year old male will die within a year?

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Answer #1

No. of people died within a year for a given sample= 80-79.968=.032

According to the relative frequency approximation, probability of the event occurring is

In the given Life insurance case,

the probability that a randomly selected 40 years old male die within a year is

Which gives

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