5- Let L be the random variable of the loss on issue of a contract for...
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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 π = 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. 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 π = 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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The answer for the given question ie Actuarial Notation is as follows C EL with the pr... View the full answer
Related Book For
Introduction to Mathematical Statistics and Its Applications
ISBN: 978-0321693945
5th edition
Authors: Richard J. Larsen, Morris L. Marx
Posted Date:
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