Question

Company XYZ will pay a death benefit of $1000 to each of its 5000 employees who...

Company XYZ will pay a death benefit of $1000 to each of its 5000 employees who die in the upcoming year. There is 3% chance that an employee will die in the upcoming year.

Determine the amount of funds that Company XYZ needs to have if the company wants to have a 95% probability of having sufficient money to pay the benefits. (You may ignore the continuity correction.)

Math   Statistics-And-Probability   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

The number of employees who die out of the 5000 employees in the coming year could be modelled here as:

This can be approximated to a normal distribution here as:

From standard normal tables, we have here:
P(Z < 1.645) = 0.95

Therefore the amount of funds here is computed as:
= Mean + 1.645*Sd

Therefore the funds amount here is computed as:
= 169.84*$1000

= $169,842.55

Therefore $169,842.55 is the required amount of funds here

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Harmony Express Company offers a defined-benefit pension plan to all its employees. At December 31, 2015,...
Harmony Express Company offers a defined-benefit pension plan to all its employees. At December 31, 2015, the fair value of plan assets, which equal the market-related asset value, was $600,000 and the Projected Benefit Obligation was also $600,000. On January 1, 2016, as part of the union agreement, Harmony Express Company granted $75,000 in retroactive benefits to all employees for their prior years’ service when the average remaining service life of employee base was 10 years. The actuary provided the...
You work for XYZ as HR Manager. The company differentiates itself from its competitors by selling...
You work for XYZ as HR Manager. The company differentiates itself from its competitors by selling unique products and capturing segments of the environmental product-line market. XYZ needs your HR help to expand its substitute for plastic product lines by establishing a new division. The division will produce an exciting new line of products that are reusable and compostable (e.g. cellulose bags to replace plastic bags and hemp containers to replace clear plastic containers that berries and tomatoes etc. are...
Managing Employee Benefits: Cutting Benefits at Generals Construction As Generals Construction moves into its tenth year,...
Managing Employee Benefits: Cutting Benefits at Generals Construction As Generals Construction moves into its tenth year, the company’s future is promising. The company has continued to grow and profit, but the CEO has asked company leaders to examine expenses to ensure that the company is financially stable going forward. As the Director of Human Resources, Jane Smith is examining opportunities to cut employeerelated expenses while maintaining employee satisfaction and morale. However, Director of Finance Ann Lane is pushing some cost-cutting...
Prevosti Farms and Sugarhouse pays its employees according to their job classification. The following employees make...
Prevosti Farms and Sugarhouse pays its employees according to their job classification. The following employees make up Sugarhouse's staff: Employee Number Name and Address Payroll information A-Mille Thomas Millen Hire Date: 2-1-2019 1022 Forest School Rd DOB: 12-16-1982 Woodstock, VT 05001 Position: Production Manager 802-478-5055 PT/FT: FT, exempt SSN: 031-11-3456 No. of Exemptions: 4 401(k) deduction: 3% M/S: M Pay Rate: $35,000/year A-Towle Avery Towle Hire Date: 2-1-2019 4011 Route 100 DOB: 7-14-1991 Plymouth, VT 05102 Position: Production Worker 802-967-5873...
Employees Love SAS SAS, a software company established in 1976, has consistently been praised as one...
Employees Love SAS SAS, a software company established in 1976, has consistently been praised as one of the best places to work. Year after year, the company receives high rankings and awards from magazines such as Fortune and Working Mother. Review the three segments of the case and write your responses as instructed. Because employees do the actual work of the business and influence whether the firm achieves its objectives, most top managers agree that employees are an organization's most...
Subject: Human Resource Management Main question: Which benefit plans would you choose, and which wouldn't you...
Subject: Human Resource Management Main question: Which benefit plans would you choose, and which wouldn't you choose and give reasons why you would or would not want a benefit that were used in making the benefit selections (specially at at entry level making $30000). PROCEDURES: Assume that you recently graduated from college and are just starting a new job at a large firm. You will be receiving a starting net pay (net of all taxes and mandatory deductions) of $30,000....
Team 5 answer the questions What are 4 key things you learned about the topic from...
Team 5 answer the questions What are 4 key things you learned about the topic from reading their paper? How does the topic relate to you and your current or past job? Critique the paper in terms of the organization and quality. Incentive Systems             In this paper, we will focus primarily on financial rewards that companies use to attract, retain and motivate the brightest and most talented candidates in the labor market. By providing a reward system that...
can you please work on this assignment because I am having some issues with it. I...
can you please work on this assignment because I am having some issues with it. I have it completed I would just like to know if everything is correct.   DISCRETE PROBABILITY DISTRIBUTIONS (3 points) The number of hits on a certain website follows a Poisson distribution with a mean rate of 4 per minute. What is the probability that 5 messages are received in a given minute? 0.1563 What is the probability that 9 messages are received in 1.5 minutes?...
Question 1 (1 point) Ray died this year at age 73, and his wife, Mary, age...
Question 1 (1 point) Ray died this year at age 73, and his wife, Mary, age 55, is the designated beneficiary on his Roth IRA. Ray's Roth IRA was established 3 years ago. Which of the following statements is(are) CORRECT? I Ray was not subject to required minimum distributions from his Roth IRA during his lifetime. II If Mary chooses to distribute the entire balance of the Roth IRA this year, the distribution may be subject to both regular income...
Scenario Pigs R Us is a second generation, family-owned Richmond-based company with about 400 employees. It...
Scenario Pigs R Us is a second generation, family-owned Richmond-based company with about 400 employees. It slaughters, manufactures, and sells pork food products.  Pigs R Us (PRU) is a low-tech, hands-on, “bricks and mortar” type of company with solid brand recognition, an impeccable reputation for high quality and ethical standards. The processes used in manufacturing are with the highest ISO20002 standards, and the plant is maintained immaculately. The personnel are comprised of an older work force (average employee age is late...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT