Math 472 HW 5 Solutions - MATH 472/567 Actuarial Theory...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Homework #5: Spring 2011 Assigned February 23, due March 2 1. For a double decrement table with l ( τ ) 40 = 1000: (i) q (1) 40 = 0.24 and q (2) 40 = 0.10 (ii) q 0 (2) 40 = 0.12 and q 0 (2) 41 = 0.24 (iii) q 0 (1) 40 = 1.25 q 0 (1) 41 Calculate: l ( τ ) 42 . (401.28) 2. Paul, age 33, is an actuarial science professor. His career is subject to two decrements: (i) Decrement 1 is mortality. The associated single decrement table follows de Moivre’s Law with ω = 90. (ii) Decrement 2 is leaving academic employment: μ (2) 33 ( t ) = 0.03 for t 0. Calculate the probability that Paul dies in the sixth year. (0.0149) 3. Lex owns a car that is x years old: (i) The car faces two decrements: (1) = breakdown and (2) = sale. (ii) Decrements are uniformly distributed between x and (x + 1) in the double decrement table. (iii) q 0 (1) x = 0.2 and q 0 (2) x = 0.1 Find the probability that the car will breakdown in the next six months. (0.0951)
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

Page1 / 7

Math 472 HW 5 Solutions - MATH 472/567 Actuarial Theory...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online