Table 1: Answer Key: Place all your answers here for consideration
Q# Answer
1
a
2
a
3
a
4
d
5
d
6
d
7
a
Michigan State University
Department of Mathematics
STT 456 Spring 13
TEST 3
Name (Print): Solu
Suggested solutions to DHW textbook exercises
Exercise 8.1
Note the ip-op in the s according to the Errata.
(a) Since you cannot return to state 0 once you leave the state, we must have:
t
5 t
01 s +
Suggested solutions to DHW textbook exercises
Exercise 7.14
In the subsequent development of the formulas, we shall denote by P the applicable single
benet premium to be paid at time of policy issue.
Suggested solutions to DHW textbook exercises
Exercise 7.13
(a) In general, with no expenses, the Thieles dierential equation can be expressed as
d
t V = t t V + P (St t V )[x]+t .
dt
For this problem
Michigan State University
Department of Mathematics
STT 456 Spring 13
TEST 1
Name (Print):
Name (Sign):
Case 1: A whole life insurance with reduced early sum insured is issued to a
life age 50. The su
Michigan State University
Department of Mathematics
STT 456 Spring 13
TEST 2
Name (Print):
Name (Sign):
Basic Information: As promised, the Forward Euler approximation for
the Kolmogorov equations are
Michigan State University
Department of Mathematics
STT 456 Spring 13
TEST 2
Name (Print):
Name (Sign):
All Answers Must Be Entered Into This Answer Key
Question Number
1
2
3
4
5
6
7
Answer
c
b
b
c
a
Michigan State University
Department of Mathematics
STT 456 Spring 14
TEST 1
Name (Print):
Name (Sign):
All Answers Must Be Entered Into This Answer Key
Question Number
1
2
3
4
5
6
7
Answer
d
e
a
b
b
Table 1: Answer Key: Place all your answers here for consideration
Q# Answer
1
f
2
a
3
a
4
b
5
c
6
a
7
a
Michigan State University
Department of Mathematics
STT 456 Spring 13
TEST 4
Name (Print): Solu
Suggested solutions to DHW textbook exercises
Exercise 7.11
(a) Let G be the required annual gross premium. The APV of future premiums is
APV(FP0 ) = G a[40]: 10 ,
the APV of future benets is
APV(FB0