Question: Question 2* Suppose some organization sets up a death benet fund for its members. Death benet (x) $ 100,000 Annual mortality rate of a member

Question 2* Suppose some organization sets up a death benet fund

Question 2* Suppose some organization sets up a death benet fund for its members. Death benet (x) $ 100,000 Annual mortality rate of a member 0.8% Equity capital (SO) $ 700,000 Maximum probability of ruin (gt!) 0.5% Time horizon 1 year Determine the safety loading and premium income that is required for the desired maximum probability of ruin of 0.5%

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