(26). For a life insurance company, it is important to construct
life tables (consisting of the probability that a person will
survive in the next year, conditional on a person that has been
survived up to current). A life insurance company uses life tables
to assist calculation of life insurance premium. Assume that the
lifetime of randomly selected person is approximately normally
distributed with a mean 68 years and a standard deviation 4
year.
A whole life insurance implies that insurance company needs to
pay out the death benefit if the insured die, no matter when the
death event is happened. For a group of 10 independent
newborn insureds who are currently all under whole life
insurances, What is the probability that a randomly selected
person will die before 60 years?
a. 0.0228
b. 0.0331
c. 0.8942
d. 0.7568
e. 0.9777