Solutions to Practice Questions 1 ACTSC 432/832, Fall 2014
1. (a) The expected amount of a claim is E(X) = E(E(X|) = E(/2) = 25.
(b) V ar(X) = E(V ar(X|) + V ar(E(X|) = E(32 /4) + V ar(/2) = 2078.33.
(c) For x > 0, F (x) =
0.025x 0.03x log
3
100
1
1 +x
d
Practice Questions 1 ACTSC 432/832, Fall 2014
1. Let X be the amount of a claim. Given = > 0, the conditional distribution of
X is a Pareto distribution P areto(3, ). The distribution function of is a uniform
distribution U (0, 100).
(a) Calculate the exp
ACTSC 232 SPRING 2014
ASSIGNMENT 2 DUE: Monday, July 7 by 4 p.m. (Drop Box in MC)
1. For a special type of whole life insurance issued to (60), you are given:
Death benefits are 10,000 for the first 5 years, 20,000 for the next 5 years, and 5,000
thereaf
ACTSC 232 SPRING 2014
ASSIGNMENT 3 DUE: Tuesday, July 29 in the MC Building Drop Boxes (4th Floor)
*All answers should be given to 4 decimal places
1. Refer to your Excel sheet from Assignment #2 as a starting point to answer the following questions.
Usin
ACTSC 232 Spring 2014 Tutorial Problem Set #4
First (given) Name: Last (family) Name:
D No.: I [g >
*Please give numerical answers to 4 decimal places whenever possible.*
User ID (i.e. jradcock):
If you are unable to calculate values, write down expressio
Assignment 1
ACTSC231 (Mathematics of Finance), FALL 2010
Due: (Friday) October 01, 2010
Hand in to the instructor in class
To earn the credit of the assignment, you need to justify your answer. Simply listing the nal
answer is unacceptable. I might only
Actsci 231 LECTURE NOTES
Prof: Keith Freeland
Lecture 1
CHAPTER 1 Time Value of Money
1.1
Lenders are willing to lend their money because the borrower pays them a fee(like rent) called
interest
Ex If we deposit $100 into a savings account paying 5% intere