Question: 5- Let L be the random variable of the loss on issue of a contract for a whole life insurance of $10,000 issued at

5- Let L be the random variable of the loss on issue

5- Let L be the random variable of the loss on issue of a contract for a whole life insurance of $10,000 issued at (30), with profit payable at the time of death and continuous premium it payable for 10 years. If 8 = 0.04, ux = 0.02 Vx, and the insurer charges a premium = 1.1 x the premium calculated under the principle of equivalence, a) Define the random variable L. b) Find the maximum and minimum value of L. c) Evaluate E (L) with the premium n. d) Calculate the probability that a contract will be profitable.

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