Question

Problem 3-23 Long-Life Insurance has developed a linear model that it uses to determine the amount of term life insurance a family of four should have, based on the current age of the head of the household. The equation is: y

Answer 1

Answer:

$154

Step-by-step explanation

Since we have a linear model already given, (say for example) $y= 172 - 0.5x$

where y= Insurance needed ;

x = Current age of head of household

To determine the amount of term life insurance to recommend for a family of four given the age of the head of the household x=36 years

We simply substitute the value of x into the equation.

$y= 172 - ( 0.5 X 36) = 172-18=154$

Therefore, if the age of the head of the household, x is 36 years, the value of Insurance needed, y is $154

You can use this procedure to resolve any similar linear model given the value of x.