Answer the following microeconomics questions

2.1 A mortality table has a select period of three years. (i) Find expressions in terms of the life table functions (x]+t and ly for (a) 9150] (b) 2P[50] (c) 2 9150] (d) 2 39(50]+1 (ii) Calculate 3p53 given that: 9150] = 0.01601, 29[50] = 0.96411, 2 9(50] = 0.02410, 2139[50] +1 = 0.09272 2.2 In its premium rate basis, an office assumes a 3-year select period. Functions on this table are indicated by an asterisk. The table is such that: 9( x +7] = 9(x+3]+1 = 9/2)+2 = 91+1 and ultimate mortality follows A1967-70 ultimate. Assuming further that I* = ly on A1967-70 ultimate, calculate jas]+ for t = 0, 1 and 2. 2.3 A certain life table has a select period of 1 year. At each integer age r , the select rate mortality is 50% of the ultimate rate. Calculate eco] , given that eco = 17.5424 and q60 = 0.0142. 2.4 Explain briefly the concept of selection in relation to mortality tables. Define the term "select period" and, using the A1967-70 table as an example, explain how a select table differs in construction from an aggregate table such as English Life Table No. 12 - Males