1 If T, and K, are random variables measuring the complete and curtate future lifetimes, respectively,...
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1 If T, and K, are random variables measuring the complete and curtate future lifetimes, respectively, of a life aged x, write down an expression for each of the following symbols as the expectation of a random variable: (i) (ii) Ax (0) (ii) xn 2 The benefit payable under a special assurance policy has present value random variable: W=max(K, +1,n) xn where K is the curtate future lifetime of a person currently aged exactly x. (i) Describe the benefit paid under this policy. Express E[W] in terms of standard actuarial notation. Express var[W] in terms of standard actuarial notation. 3 Calculate the expectation and standard deviation of the present value of the benefits from each of the following contracts issued to a life aged exactly 40, assuming that the annual effective interest rate is 4% and AM92 Ultimate mortality applies: a 20-year pure endowment, with a benefit of £10,000 a deferred whole life assurance with a deferred period of 20 years, under which the death benefit of £20,000 is paid at the end of the year of death, as long as this occurs after the deferred period has elapsed. (i) 4 Using an interest rate of 6% pa effective and AM92 Ultimate mortality, calculate: A¹ 50:15 (ii) A50:15 5 If /40=1,000 and /40+t=140-5t for t=1,2,...,10, calculate the value of A40:10] at 6% pa interest. 1 If T, and K, are random variables measuring the complete and curtate future lifetimes, respectively, of a life aged x, write down an expression for each of the following symbols as the expectation of a random variable: (i) (ii) Ax (0) (ii) xn 2 The benefit payable under a special assurance policy has present value random variable: W=max(K, +1,n) xn where K is the curtate future lifetime of a person currently aged exactly x. (i) Describe the benefit paid under this policy. Express E[W] in terms of standard actuarial notation. Express var[W] in terms of standard actuarial notation. 3 Calculate the expectation and standard deviation of the present value of the benefits from each of the following contracts issued to a life aged exactly 40, assuming that the annual effective interest rate is 4% and AM92 Ultimate mortality applies: a 20-year pure endowment, with a benefit of £10,000 a deferred whole life assurance with a deferred period of 20 years, under which the death benefit of £20,000 is paid at the end of the year of death, as long as this occurs after the deferred period has elapsed. (i) 4 Using an interest rate of 6% pa effective and AM92 Ultimate mortality, calculate: A¹ 50:15 (ii) A50:15 5 If /40=1,000 and /40+t=140-5t for t=1,2,...,10, calculate the value of A40:10] at 6% pa interest.
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1 The symbols Ax and xl can be expressed as the expectation of a random variable as follows Ax EeTx xl EKx where Tx is the complete future lifetime random variable Kx is the curtate future lifetime ra... View the full answer
Related Book For
Principles of Communications Systems, Modulation and Noise
ISBN: 978-8126556793
7th edition
Authors: Rodger E. Ziemer, William H. Tranter
Posted Date:
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