Question

Not every application of probability has to do with gambling. Actuarial life tables are based on human mortality rates and are used, for example, in insurance applications, such as pricing life insurance premiums. Look at the 2014 life table for the United States at https://www.ssa.gov/oact/STATS/table4c6.html. The column labeled life expectancy gives the mean number of years of life remaining at a given age. According to this table:

a) What is the life expectancy of a newborn boy? Of a newborn girl?

b) How old can a 30-year old man expect to live to? A 30 year-old woman?

c) How old can a 65-year old man expect to live to? A 65 year-old woman?

Answer 1

Solution:

from the table

a) life expectancy of a newborn boy = 76.15 // (refering exact age =0)

life expectancy of a newborn girl = 80.96   

b) age 30 year old man expect to live to = his age +life expectancy at his age

= 30 + 47.75

= 77.75 //(refering exact age =30)

age 30 year old woman expect ot live to = her age + life expectancy at her age

= 30 + 51.95

= 81.95   

c) age 65 year old man expect to live to = his age +life expectancy at his age

= 65 + 17.81

= 82.81 // (refering exact age =65)

age 65 year old women expect to live to = her age + life expectancy at her age

= 65 + 20.36

=85.36