Question

Insurance companies use probabilities to determine the rate they will charge for an insurance policy. In a study of 300 people that had life insurance policies, an insurance company found that 111 people were over 80 years old when they died, 82 people died when they were between 70 and 80 years old, 52 died between 60 and 70 years old, and 55 died when they were younger than 60 years old. In this study what was the probability of dying younger than 70 years old? Did you respond with an experimental probability or a theoretical one?

Answer 1

36% Theoretical

Explanation:

52 were 60 < x < 70

55 were x < 60

55 + 52 = 107

107/300 = 0.356666667

Rounding would get you 36%

Theoretically, there is a 36% chance of dying younger than 70.