Tutorial 3

Tutorial 3 - FIN 3220A Actuarial Models I Tutorial 3 12...

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FIN 3220A Actuarial Models I Tutorial 3 12 October 2005 1. You are given: (i) i = 0.02 (ii) p 50 = 0.98 (iii) A 51 – A 50 = 0.004 (iv) 2 A 51 2 A 50 = 0.005 Let Z be the random variable representing the PV of a whole life insurance of 1 with death benefit payable at the end of the year of death. Calculate Var(Z) for x = 51. 2. An increasing whole life insurance pays k+1 at the end of year k+1 if (80) dies in year k+1, k = 0, 1, 2… You are given: (i) v = 0.925 (ii) The NSP for this insurance is 4 if q 80 = 0.1 P is the NSP for this insurance if q 80 = 0.2 and q x is unchanged for all other ages. Calculate P. 3. Z 1 is the PV r.v. for an n-year term insurance of 1 on the life of (x). Z 2 is the PV r.v. for an n-year endowment insurance of 1 on the life of (x). Given: (i) v n = 0.2 (ii) n p x = 0.5 (iii) E(Z 1 ) = 0.23 (vi) Var(Z 1 ) = 0.08 (v) Death benefits are payable at the moment of death Calculate Var(Z 2 ). 4. A special n-year endowment insurance on (x) pays a pure endowment of
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This note was uploaded on 05/21/2011 for the course FIN 3220 taught by Professor Cswong during the Spring '05 term at CUHK.

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Tutorial 3 - FIN 3220A Actuarial Models I Tutorial 3 12...

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