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Unformatted text preview: k = 0 , 1 , 2 ,..., 9. (a) Compute Pr[ K x = 0], Pr[ K x = 1], Pr[ K x = 2] and Pr[ K x 3]. (b) Let Y = min( K x , 3), where K x is the curtate future lifetime random variable. i. Calculate E( Y ). ii. Calculate Var( Y ). [10 marks] 4. (a) Show that when x = Bc x , we have t p x = g c x ( c t-1) , where g is a constant that you should identify. (b) For a mortality table constructed using the above force of mortality, you are given that 10 p 50 = 0 . 861716 and 20 p 50 = 0 . 718743; calculate the values of B and c . [12 marks] 1...
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This note was uploaded on 10/22/2009 for the course ACTSC 232 taught by Professor Matthewtill during the Winter '08 term at Waterloo.
- Winter '08