fall2010Homework 2

fall2010Homework 2 - 1 A participant in a pension plan is...

Info icon This preview shows pages 1–6. Sign up to view the full content.

View Full Document Right Arrow Icon
November 12, 2010 1. A participant in a pension plan is subject to three decrements: (1) is retirement, (2) is death, (3) is other termination. All terminations have a constant force of decrement as follows: i. = 0.05 ii. = 0.01 iii. = 0.10 Calculate the following items: a. b. c. d. e. f. g. h. i. j. k. l.
Image of page 1

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

View Full Document Right Arrow Icon
November 12, 2010 2. Your professor is 54 years old. My teaching career is subject to two decrements as follows: i. Decrement 1 is mortality. The associated single decrement table for future mortality follows De Moivre’s law with ω = 50. ii. Decrement 2 is retirement. The associated single decrement table for future retirement follows De Moivre’s law with ω = 20. Calculate the following items: a. b. c. d. e. f. g. h. i. j. k. l. m. n. o.
Image of page 2
November 12, 2010 3. (Spreadsheet) One thousand whole life policies are issued to males (20). The policies are subject to two decrements as follows: i. Mortality (1) where is the mortality rate in the Excel File on Class Website ii. Lapse (2) where is the lapse rate in the following table x 20 0.20 21 0.10 22 0.08 23 0.07 24 0.06 25+ 0.05 In a spreadsheet complete the following table: x 20 21 120 4. Using the table created in Problem 3, calculate the following: i. ii. The probability of termination by lapse between the end of the 5 th duration and the end of the 10 th duration. iii. The number of policies still in force at attained age 65. iv. v.
Image of page 3

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

View Full Document Right Arrow Icon
November 12, 2010 5. You are given: i. ii. iii. Assuming that each decrement is uniformly distributed over each year of age in the associated single decrement table, calculate 6. You are given: i. ii. iii. Assuming that each decrement in the multiple decrement table is uniformly distributed over each year of age, calculate 7. You are given the following for a double decrement table: i. ii. Assuming that each decrement in the multiple decrement table is uniformly distributed over each year of age, calculate 0.4 8. You are given: i. ii. Decrement (1) is uniformly distributed over the year. Decrement (2) occurs at time 0.6. Calculate . 9. For a double decrement table with x 40 0.24 0.10 0.25 y 41 -- -- 0.20 2y Calculate
Image of page 4
November 12, 2010 10. For iPhones, the phone may cease service for mechanical failure or for other reasons (lost, stolen, dropped in a pitcher of beer, etc). You are given the following double decrement table: Year of Service For an iPhone at the beginning of the year of service, probability of Mechanical Failure Failure for Other Reasons Survival through the year of service 1 0.2 0.30 -- 2 -- 0.40 -- 3 -- -- 0.20 You are also given: i. The number of iPhones that terminate for other reasons in year 3 is 40% of the number of iPhones that survive to the end of year 2. ii. The number of iPhones that terminate for other reasons in year 2 is 80% of the number of iPhones that survive to the end of year 2. Calculate the probability that an iPhone will cease to function due to mechanical failure during the three year period following its entry into service.
Image of page 5

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

View Full Document Right Arrow Icon
Image of page 6
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern