Question

What survival rate in the 10th year would make the average rate of loss over the 10-year period equal to 38.0%?

Answer 1

Answer: 63%

Step-by-step explanation:

First find the rate of loss that would cause the average rate of loss over the 10-year period equal to 38.0%.

Assume that rate is x.

38 = (36.2 + 29.0 + 46.2 + 37.5 + 40.9 + 40.0 + 32.6 + 40.5 + 40.1 + x) / 10

38 = (343 + x ) / 10

380 = 343 + x

x = 380 - 343

x = 37%

The survival rate is the opposite of the rate of loss which means that the survival rate is;

= 1 - rate of loss

= 1 - 37%

= 63%