Question: Please help : Suppose that the survival function for a newborn parakeet is such that 20% of parakeets die during the first 5 years, with
Please help
: Suppose that the survival function for a newborn parakeet is such that 20% of parakeets die during the first 5 years, with the age at death uniformly distributed. After that, they are subject to a constant force of mortality so that at age x=10, there are only 10% left. (to ensure that you compute your survival function accurately, check that the probability of surviving to age 8 is 23% ). The force of interest is =7%. (a) Consider purchasing life insurance for your beloved newborn parakeet. Find the APV of a whole life policy for a newborn parakeet that pays $9,000 at the time of death. (b) Find the APV of a term life policy of 8 years on a newborn parakeet that pays $9,000 at the time of death if death occurs before age 8 . (c) Find $9,0008E0. (make sure that you can explain in words what this means) (d) Find Var(Z0), where Z0 is the present value random variable for a whole life policy for a newborn parakeet that pays $9,000 at the time of death. : Suppose that the survival function for a newborn parakeet is such that 20% of parakeets die during the first 5 years, with the age at death uniformly distributed. After that, they are subject to a constant force of mortality so that at age x=10, there are only 10% left. (to ensure that you compute your survival function accurately, check that the probability of surviving to age 8 is 23% ). The force of interest is =7%. (a) Consider purchasing life insurance for your beloved newborn parakeet. Find the APV of a whole life policy for a newborn parakeet that pays $9,000 at the time of death. (b) Find the APV of a term life policy of 8 years on a newborn parakeet that pays $9,000 at the time of death if death occurs before age 8 . (c) Find $9,0008E0. (make sure that you can explain in words what this means) (d) Find Var(Z0), where Z0 is the present value random variable for a whole life policy for a newborn parakeet that pays $9,000 at the time of death