Question: 2. Let X1 be the present value random variable of an n-year continuous endowment insurance issued to (x), where the sum insured is 1000 ,

2. Let X1 be the present value random variable of an n-year continuous endowment insurance issued to (x), where the sum insured is 1000 , and let X2 be the present value random variable of an n-year continuous term insurance issued to (x), where the sum insured is 1000 . Calculate Var(X2) and Cov(X1,X2) in terms of Var(X1),E(X2),i, and npx

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

Show your work (i) Stating clearly any assumptions you make, carry out statistical tests to determine whether, for the population being studied: (a) individuals under 40 watch more television on...

A whole life insurance with sum insured $2000 is issued to (60). The benefit is payable at the end of the year of death. You are given that Mortality of a newborn life follows the De Moivre model 1 t...

Math 170A - Homework 3 - Due 25 October 2016 1. An insurance company has 1,000 policies. For each policy, there is one claim with probability 0.15% and no claim otherwise independent of other...

How do I review the attached articles? I want to have it review them to able to compare with what I have done so far. American Economic Association Corporate Income Taxes and the Cost of Capital: A...

1. A player throws a fair die and simultaneously flips a fair coin. If the coin lands heads, then she wins twice, and if tails, then one-half of the value that appears on the die. Determine her...

Probability and Statistics - Problem Set c Keith M. Chugg October 2, 2015 1 Preliminaries, Combinatorics, Set Probability 1.1. A number of bats are in a cave. 2 bats can see out of their left eye. 3...

1 2.3 Definition of a Discrete Probability Function Definition: Let S be a discrete sample space from some experiment. A function P, defined on all events in S, is said to be a probability function...

Planning Demand and Supply in a Supply Chain Capacity Planning and Assignment 1 utdallas.edu/~metin Outline Capacity Planning Product-to-plant Assignment utdallas.edu/~metin 2 Deterministic Capacity...

Set Student Name: 1. Describe the relationship between two variables that have a correlation coefficient value: a. Near -1 b. Near 0 c. Near 1 2. Data was collected where a weightlifter was asked to...

Why doesn't the fact that the "inflation solution" is only a temporary solution stop many developing countries from using it?

A towline is attached between a car and a glider. As the car speeds due east along the runway, the towline exerts a horizontal force of 850 N on the glider. What is the magnitude and direction of the...

Answer question ination or course, receiving a notation of a violation of academic integrity on your transcript (F!), and being suspend the University. You have the right to appeal the charge....

Apply the concepts and knowledge learned in this course to your organisational life. Specifically, you will prepare a written report that analyses the HRIS capabilities across all aspects of HRM for...

3. What sort of compensation plan would you recommend for us, and why?pg 87

1. Is the company at the point where it should be setting up a formal salary structure based on a complete job evaluation? Why?pg 87

8. Explain how to price managerial and professional jobs.pg 87