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Q
uantitative
R
easoning &
P
roblem
S
olving
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© 2014 Pacific Crest
5. What event(s) would you focus on if you were the insurance company? The insured policy holder?
What is the count of each of these event(s) based upon the Social Security Agency actuarial tables of
a population of 100,000?
6. In modeling the sample space outcomes, what is the likelihood of each outcome occurring, based
upon the Social Security Agency actuarial tables of a population of 100,000?
7. What is the likelihood of the event(s) of interest for the insurance company?
8. Viewing the insurance company as a business, how much of their income needs to be set aside to pay
off premiums?
9. Why are there differences in premium for the different populations (experiments)?