Let x = 40, 8 = 0.07 and assume mortality follows DeMoivre's Law with a maximum...
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Let x = 40, 8 = 0.07 and assume mortality follows DeMoivre's Law with a maximum age of 120. Determine the expected value and variance of the random variable Z40 for a whole life policy on this individual. Suppose now that 500 individuals of the type in question 1 buy insurance with a benefit of $250,000. Find the amount of money the insurer will need to hold to be 95% certain that the company will be able to pay the benefits to these individuals. Let x = 40, 8 = 0.07 and assume mortality follows DeMoivre's Law with a maximum age of 120. Determine the expected value and variance of the random variable Z40 for a whole life policy on this individual. Suppose now that 500 individuals of the type in question 1 buy insurance with a benefit of $250,000. Find the amount of money the insurer will need to hold to be 95% certain that the company will be able to pay the benefits to these individuals.
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To determine the expected value and variance of the random variable Z40 for a whole life policy on this individual we first need to understand DeMoivres Law DeMoivres Law models the distribution of th... View the full answer
Related Book For
Probability and Random Processes With Applications to Signal Processing and Communications
ISBN: 978-0123869814
2nd edition
Authors: Scott Miller, Donald Childers
Posted Date:
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