ACTSC232 Quiz: Problem Set 5 Solutions.pdf

• School: University of Waterloo
• Department: Actuarial Science
• Course: ACTSC232
• Professor: Johnny Li

Document Summary

Actsc 232 winter 2013 tutorial problem set #5 solutions. ***please give numerical answers to 5 decimal places whenever possible: describe in words the insurance contracts with the definitions of the random variables below. You should specify how much benefit is paid. Write down the expected value for each random variable using a" type actuarial functions. 0 , > 25: pays ,000 at moment of death if person dies within 25 years, 15000 : | (term insurance, z2 = 100,000 , 19. = 0. 31, and = 0. 04 . constant force of interest, = 0. 05, find p(y > ). [2 marks: let y = | , thus, e[y] = . 5p35 where v = (1. 06)-1 and = ln(1. 06: : | (assuming udd) [2 marks] =v(1-p35)+v2 p35(1 p36) + v3: very useful to add in a column of px values, 5e35 = v5, : | (assuming udd) = (0. 06/ln(1. 06))* : | .