Consider a two-decrement model where active policyholders can leave the active state dueto either death or sickness. At a given age x, the independent probability of death isq = 0.5, whereas the independent probability of sickness is qž = 0.6. Under theassumption of independence of decrements, which of the following is the correct value ofthe dependent probability of remaining in the active state, i.e. (ap)x?O a. (1 – 0.5) + (1 – 0.6) = 0.9.0.5Ob.x (1 – exp(-(0.5 + 0.4)) z 0.33.0.5+0.4O c. 0.5 × 0.4 = 0.2.O d. 0.5 x 0.6 = 0.3.

Consider a two-decrement model where active policyholders can leave the active state due to either death or sickness. At a given age x, the independent probability of death is q = 0.5, whereas the independent probability of sickness is q = 0.6. Under the assumption of independence of decrements, which of the following is the correct value of the dependent probability of remaining in the active state, i.e. (ap),? O a. (1 – 0.5) + (1 – 0.6) = 0.9. Ob. 0.5 x (1 - exp(-(0.5 + 0.4))) 0.33. 0.5+0.4 O c. 0.5 x 0.4 = 0.2. O d. 0.5 x 0.6 = 0.3.

Consider a two-decrement model where active policyholders can leave the active state due to either death or sickness. At a given age x, the independent probability of death is q = 0.5, whereas the independent probability of sickness is q = 0.6. Under the assumption of independence of decrements, which of the following is the correct value of the dependent probability of remaining in the active state, i.e. (ap),? O a. (1 – 0.5) + (1 – 0.6) = 0.9. Ob. 0.5 x (1 - exp(-(0.5 + 0.4))) 0.33. 0.5+0.4 O c. 0.5 x 0.4 = 0.2. O d. 0.5 x 0.6 = 0.3.

College Algebra

7th Edition

ISBN:9781305115545

Author:James Stewart, Lothar Redlin, Saleem Watson

Publisher:James Stewart, Lothar Redlin, Saleem Watson

Chapter9: Counting And Probability

Section9.3: Binomial Probability

Problem 2E: If a binomial experiment has probability p success, then the probability of failure is...

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