{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

Math 472 HW 10 Solutions

# Math 472 HW 10 Solutions - MATH 472/567 Actuarial Theory...

This preview shows pages 1–5. Sign up to view the full content.

MATH 472/567: Actuarial Theory II/Topics in Actuarial Theory I Homework #10: Spring 2011 Assigned April 13, due April 20 1. Consider independent lives (25) and (50), each with mortality that follows de Moivre’s Law with limiting age 100. Calculate: (a) 25 q 1 25:50 . (0.25) (b) 25 q 2 25:50 . (0.0833) 2. Using the setup in Problem 1 above, and further assuming δ = 0.05, calculate the actuarial present value of a life insurance that pays 1 at the moment of death of (25) if (25) is the second to die. (0.0916) 3. For a special last-survivor insurance of 10,000 on (x) and (y): (i) The death benefit is payable at the moment of the second death. (ii) Level annual benefit premiums are payable continuously each year at a rate of π per year while both (x) and (y) are alive. (iii) The independent random variables T * ( x ), T * ( y ), and Z are components of the common shock model. Each are exponentially distributed with forces of mortality equal to 0.03, 0.05, and 0.01, respectively. (iv) δ = 0.06 Calculate: π . (450) ————THERE ARE MORE PROBLEMS ON THE BACK ———— 1

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

View Full Document
4. You are given: (i) In the absence of a common shock, (x) and (y) would have constant forces

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 / 5

Math 472 HW 10 Solutions - MATH 472/567 Actuarial Theory...

This preview shows document pages 1 - 5. Sign up to view the full document.

View Full Document
Ask a homework question - tutors are online