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Unformatted text preview: l x = 100 x for 0 x 100, and i = 6%. Let L j denote the lossatissue random variable for life j , where j = 1, 2, . .., 100. (a) Determine P ( A 35 ) and var ( L j ). (0.0203, 0.1187) (b) Let S denote the sum of all L j . Using the normal approximation, determine what size fund, say h , is necessary so that the insurer is 90% sure that S will not exceed h . (4.42) 4. On January 1, 2010, Pat, age 40, purchases a fully continuous 5payment 10year term insurance of 100,000. Premiums of 4000 are payable continuously each year for the rst 5 years, and = 0.05. Calculate the value of L if Pat dies on June 30, 2012. (78,849.44)...
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 Spring '08
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 Math

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