Question 6 (of 8) 6, o.62 points Problem 3-23 Long-Life Insurance has developed

Question

Question 6 (of 8) 6, o.62 points 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 148-.1x x Current age of head of household 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 24 years old. (Round your answer to 1 decimal place. Omit the "$" sign in your response.) b. Hints References eBook & Resources Check my work

Explanation / Answer

(b) The linear equation 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 is given as,

y = 148 - 0.1x

where,

y = Insurance needed ($000)

x = Current age of head of household

Given,

Age of head of household = 24 years

Amount of term life insurance can be determined by replacing ‘x’ in the above linear equation with the age of the head of household.

Amount of term life insurance = 148 - 0.1x

Amount of term life insurance = 148 - (0.1 x 24)

Amount of term life insurance = 148 - 2.4

Amount of term life insurance = $145.6 thousands

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