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A pension scheme uses the following model to calculate probabilities, where the transition intensities are x =0.05 and p=0.08. P Active Retired Dead Derive and
A pension scheme uses the following model to calculate probabilities, where the transition intensities are x =0.05 and p=0.08. P Active Retired Dead Derive and calculate (a) the dependent probability of retirement (b) the independent probability of death from active service using the Kolmogorov equations. [5)
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