John is 35 years old, and makes $30,000 per year. If he were to die, how much
would the beneficiaries of his life insurance policy receive if they can get by
on 75% of his income?
Current Gross Earnings
$ 7.500
9,000
15,000
23,500
30,000
40,000
65,000
MULTIPLES-OF-SALARY CHART
Current Age
25 Years 35 Years 45 Years
75% 60% 75% 60% 75% 60%
4.0 3.0 - 5.
5 4 .0 7.5 5.5
4.0 3.0* 5.5 4.0 7.5 5.5
4.5 3.0 6.5 4.5 8.0 6.0
6.5 4.5 8.0 5.5 8.5 6.5
7.5 50 8.0 6.0 8.5 6.5
7.5 5.0 8.0 6.0 8.0 6.0
7.5 55 7.5 6.0 7.5 6.0
55 Years
75% 60%
6.5 4.5
6.5 4.5
7.0 5.5
7.5 5.5
7.0 5.5
7.0 5.5
6.5 5.0
A. $188,000
B. $240,000
C. $140,000
D. $150,000

Amachine that produces a special type of transistor (a component of computers) has a 2% defective rate. the production is considered a random process where each transistor is independent of the others. (a) what is the probability that the 10th transistor produced is the first with a defect? (b) what is the probability that the machine produces no defective transistors in a batch of 100? (c) on average, how many transistors would you expect to be produced before the first with a defect? what is the standard deviation? (d) another machine that also produces transistors has a 5% defective rate where each transistor is produced independent of the others. on average how many transistors would you expect to be produced with this machine before the first with a defect? what is the standard deviation? (e) based on your answers to parts (c) and (d), how does increasing the probability of an event a↵ect the mean and standard deviation of the wait time until success?