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Unformatted text preview: = 100, and = 0.06 (ii) h is the aggregate amount the insurer receives from the 100 lives. Using the normal approximation, calculate h such that the probability the insurer has sucient funds to pay all claims is 0.95. (203.78) 4. Let Z be the present value random variable for a continuous 20year endowment insurance of 1 on (40). Assume mortality follows de Moivres Law with limiting age 100, and = 0.05. Show that the cdf of Z , F Z ( z ), is such that: F Z ( z ) = 0 for z < e1 = 1 + ln( z ) 3 for e1 z < 1 = 1 for z 1 5. If u x ( t ) = and t = for all t > 0, show that: ( I A ) x = ( + ) 2 ....
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This note was uploaded on 02/14/2011 for the course MATH 471 taught by Professor Staff during the Spring '08 term at University of Illinois, Urbana Champaign.
 Spring '08
 Staff
 Math

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