A company that sells annuities must base the annual payout on the probability distribution of life of the participants in the plan. Suppose the probability distribution of lifetimes of participants is approximately a normal distribution with a mean of 68 years and a standard deviation of 3.5 years. What is the probability of plan recipients dying before they reach the standard retirement age of 65?
Added by Curtis S.
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We are given a normal distribution with a mean ($\mu$) of 68 years and a standard deviation ($\sigma$) of 3.5 years. Show more…
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