Math 472 HW 5 Solutions

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

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

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)

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

View Full Document
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
Ask a homework question - tutors are online