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A Company Must Decide Their Contribution to Their Pension Plan

Question 55

Multiple Choice

A company must decide their contribution to their pension plan based on the probability distribution of the length of life of their retired employees. Suppose the probability distribution of the lifetimes of their employees is approximately a normal distribution with μ = 74 years and σ = 8.6 years.
-What percentage of their retired employees would receive payments beyond age 85?


A) 13.28%
B) 19.87%
C) 19.13%
D) 10.03%
E) 10.90%

Correct Answer:

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