edu-mc-exam-mlc-0507 - Exam MLC Spring 2007 FINAL ANSWER...

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Exam MLC: Spring 2007 - 1 - GO ON TO NEXT PAGE Exam MLC Spring 2007 FINAL ANSWER KEY Question # Answer Question # Answer 1 E 16 B 2 B 17 D 3 D 18 C 4 E 19 D 5 C 20 C 6 A 21 B 7 E 22 C 8 E 23 B 9 E 24 A 10 C 25 B 11 A 26 A 12 D 27 A 13 C 28 C 14 * 29 A 15 D 30 D * The exam problem was defective. Mechanically, all candidates received credit. The problem now shows the exam version and the intended meaning. The answer to the intended wording is E.
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Exam MLC: Spring 2007 - 2 - GO ON TO NEXT PAGE **BEGINNING OF EXAMINATION** 1. You are given: (i) 37 0 0.95 p = (ii) 27 1 0.96 p = (iii) 75 71 0.107 x dx μ = Calculate 57 0 p . (A) 0.85 (B) 0.86 (C) 0.87 (D) 0.88 (E) 0.89
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Exam MLC: Spring 2007 - 3 - GO ON TO NEXT PAGE 2. You are given: (i) () ,0 x tc t μ =≥ (ii) 0.08 δ = (iii) 0.3443 x A = (iv) Tx is the future lifetime random variable for ( ) x . Calculate ( ) Var a . (A) 12 (B) 14 (C) 16 (D) 18 (E) 20
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Exam MLC: Spring 2007 - 4 - GO ON TO NEXT PAGE 3. For a fully discrete whole life insurance of 1000 on the select life [ ] 60 : (i) Ultimate mortality follows the Illustrative Life Table. (ii) The select period is 3 years. (iii) 0.06 i = (iv) [] 60 1000 359.00 A = Calculate 5 60 1000 V , the benefit reserve at the end of year 5 for this insurance. (A) 112 (B) 116 (C) 121 (D) 126 (E) 130
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Exam MLC: Spring 2007 - 5 - GO ON TO NEXT PAGE 4. For a fully discrete whole life insurance of 150,000 on ( x ), you are given: (i) 2 0.0143 x A = (ii) A x = 0 0653 . (iii) The annual premium is determined using the equivalence principle. (iv) L is the loss-at-issue random variable. Calculate the standard deviation of L . (A) 14,000 (B) 14,500 (C) 15,100 (D) 15,600 (E) 16,100
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Exam MLC: Spring 2007 - 6 - GO ON TO NEXT PAGE 5. Heart/Lung transplant claims in 2007 have interarrival times that are independent with a common distribution which is exponential with mean one month. As of the end of January, 2007 no transplant claims have arrived. Calculate the probability that at least three Heart/Lung transplant claims will have arrived by the end of March, 2007. (A) 0.18 (B) 0.25 (C) 0.32 (D) 0.39 (E) 0.45
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Exam MLC: Spring 2007 - 7 - GO ON TO NEXT PAGE 6. People arrive at a food bank at a Poisson rate of 10 per day. 80% of them donate non- perishable units of food and 20% withdraw units of food. Individual food donations are distributed with mean 15 and variance 75 and individual food withdrawals are distributed with mean 40 and variance 533. The number arriving and the amounts of donations and withdrawals are independent. Using the normal approximation, calculate the probability that the amount of food units at the end of seven days will be at least 600 more than at the beginning of the week. (A) 0.07 (B) 0.09 (C) 0.11 (D) 0.13 (E) 0.15
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Exam MLC: Spring 2007 - 8 - GO ON TO NEXT PAGE 7. For five special fully continuous whole life insurances on (35): (i) The death benefit on each insurance is 1000. (ii) Benefit premium rates for the first five years are shown in the graphs below. (iii) Benefit premium rates after five years for each insurance are level, not necessarily at the same rate as during year 5. (iv) 0.05 δ = Which of these benefit premium patterns results in the largest benefit reserve at the end of year 3?
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edu-mc-exam-mlc-0507 - Exam MLC Spring 2007 FINAL ANSWER...

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