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WARRIOR [948]
2 years ago
14

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

Mathematics
1 answer:
Marat540 [252]2 years ago
7 0

Answer: 63%

Step-by-step explanation:

<u>First step</u>

Find the 10th year rate of loss that will make the average of loss over the 10 years to equal 38.0%.

Assume this rate is x;

\frac{(36.2 + 29.0 + 46.2 + 37.5 + 40.9 + 40.0 + 32.6 + 40.5 + 40.1 + x)}{10} = 38.0\\\\\frac{343 + x}{10}  = 38\\\\x  = 380 - 343\\\\x = 37

x = 37%

<u>Second step - Survival rate</u>

The survival rate is calculated by;

= 1 - rate of loss

= 1 - 37%

= 63%

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