UNIVERSITY OF ILLINOIS AT URBANACHAMPAIGN
Actuarial Science Program
DEPARTMENT OF MATHEMATICS
Math 476 / 567
Prof. Rick Gorvett
Actuarial Risk Theory
Fall, 2010
Homework Assignment # 5 (max. points = 10)
Due at the beginning of class on Thursday, October 21, 2010
You are encouraged to work on these problems in groups of no more than 3 or 4.
However, each
student must hand in her/his own answer sheet. Please show your work – enough to show that
you understand how to do the problem – and circle your final answer.
Full credit can only be
given if the answer and approach are appropriate. Please provide answers to two decimal places.
Note:
When calculating a percentage, please provide answers either as a proportion to
four decimal places (e.g., 0.xxxx), or as a percentage to two decimal places (e.g., xx.xx%).
For problems involving standard normal distribution approximations, please use precise values –
e.g., by either using the =NORMSDIST function in Excel (preferred), or interpolating in the
standard normal table.
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 Winter '08
 Staff
 Actuarial Science, Normal Distribution, Brownian motion process

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