A special discrete whole life insurance is issued to (80). The death benefit is 1000 if death occurs in the next 5 years, increases to 2000 between 5 and 10, and so on. The mortality is De Moivre with w = 100.5 and 8 = 0.08. a) Define the present value random variable Z. b) Find the actuarial present value. c) Define the variance of Z in terms of actuarial symbols.
A special discrete whole life insurance is issued to (80). The death benefit is 1000 if death occurs in the next 5 years, increases to 2000 between 5 and 10, and so on. The mortality is De Moivre with w = 100.5 and 8 = 0.08. a) Define the present value random variable Z. b) Find the actuarial present value. c) Define the variance of Z in terms of actuarial symbols.
Algebra & Trigonometry with Analytic Geometry
13th Edition
ISBN:9781133382119
Author:Swokowski
Publisher:Swokowski
Chapter10: Sequences, Series, And Probability
Section10.8: Probability
Problem 32E
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![A special discrete whole life insurance is issued to (80). The death benefit is 1000 if death occurs in
the next 5 years, increases to 2000 between 5 and 10, and so on. The mortality is De Moivre with w
= 100.5 and o = 0.08.
a) Define the present value random variable Z.
b) Find the actuarial present value.
C) Define the variance of Z in terms of actuarial symbols.
d) Find P [Z < E[Z]].](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fdfd1a49d-6e06-4a40-a8af-13a41dfd1a42%2F492729d3-9622-4331-a97e-a66c7b5f20ba%2F4pgrwrj_processed.png&w=3840&q=75)
Transcribed Image Text:A special discrete whole life insurance is issued to (80). The death benefit is 1000 if death occurs in
the next 5 years, increases to 2000 between 5 and 10, and so on. The mortality is De Moivre with w
= 100.5 and o = 0.08.
a) Define the present value random variable Z.
b) Find the actuarial present value.
C) Define the variance of Z in terms of actuarial symbols.
d) Find P [Z < E[Z]].
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