Brooks Insurance Inc wishes to offer life insurance to me ag

Brooks Insurance Inc. wishes to offer life insurance to me age 60 via the internet. Mortality tables indicate the likelihood of a 60 year old man surviving another year is 0.98. If the policy is offered to five men age 60:

a. What is the probability that all five men survive the year?

b. What is the probability at least does not survive?

Solution

probability of surviving the another year is 0.98

probability of not surviving is 1-0.98 = 0.02

a) probability that all 5 survive = 5C5*(0.98)^5*(0.02)^0 = 0.9039

B)AT LEAST 1 DOES NOT SURVIVE MEANS = 1 - ALL SURVIVE

= 1 - 0.9039 = 0.0960 ( AS FIND IN THE ABOVE PART)