Question

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 = 165 – .1x

where

y = Insurance needed ($000)
x = Current age of head of household


b.Use the equation to determine the amount of term life insurance to recommend for a family of four if the head of the household is 41 years old. (Round your answer to 1 decimal place. Omit the "$" sign in your response.)

Answer 1

Answer:

$y=160.9$

Explanation:

Linear Modeling

Models are an important part of the study of a variety of natural phenomena in a great number of fields like science, health, business, human behavior, economics, among many others.

Once a model is determined, it can be used to estimate future values of important variables which in turn can help people to make decisions.

It has been determined a model that relates the amount of term life insurance a family of four should have with the current age of the head of the household. That model is

$y=165-0.1x$

we are required to estimate the amount of term life insurance to recommend to a family of four when the head of the household is x=41 years old. Let's plug in the given value in the equation

$y=165-0.1\cdot 41=165-4.1=160.9$

$\boxed{y=160.9}$