The potential market represents all active duty military members, all veterans, and their families. Assume that according to the United States Department of Defense, as of December 31, 2014 there were 1,361,327 active duty personnel in all armed services. The veteran population totaled 21 million at the end of 2014. Assuming the average cost of life insurance is $750 per year and that potential customers purchase one policy per year, use the chain ratio method to calculate the market potential for life insurance in the military market.
The number of buyers in the market can be estimated as (Round to the nearest whole number.)