ACTSC 232 - Spring 2012 - Assignment 1

Due: Friday, May 25 at 11:30 am

90xx 1. The function 19000 has been proposed for the survival function S0 (x) for a 19000 mortality model.
2

(a) What is the implied limiting age ? (b) Verify that S0 (x) satises the 3 conditions for a survival function. (c) What is the pdf of the future lifetime random variable for a life age 0? (d) Calculate (e) Calculate
20 p0 . 10|5 q0 .

(f) Calculate the mean future lifetime for a life age 0. (g) Calculate the median future lifetime for a life age 0. (h) Determine the survival function for a life age 20. (i) What is the pdf of the future lifetime random variable for a life age 20? (j) Calculate the probability that a life age 20 will die between ages 30 and 40. (k) What is the mean age at death of a life age 20? (l) Calculate the force of mortality at age 50. 2. Prove, and explain logically in one sentence, each of the following results: (a) (b) (c)
d dx t px =t px (x x+t ) x t px x+t dt = 1 0 n 0 lx+t x+t dt = lx lx+n

3. Makehams mortality law (similar to Gompertz) is x = A + Bcx for all x 0. (a) Show that t px = st g c
x (ct 1)

, and specify the values of s and g .

4.4|6.3 q48.6

(b) With A = 0.0035, B = 0.0001, and c = 1.07, calculate

exactly.

(c) Create a spreadsheet that calculates px for all ages x = 50, 51, ..., 120. You should construct your spreadsheet so that you can easily change the Makeham parameters and the probabilities will update. You will be using this spreadsheet for your future assignments. i. Using your spreadsheet and l50 = 10, 000, create a lifetable for this mortality model with the parameters as in part b. Print o (or copy out a few values from) your lifetable. (One page max.) ii. Using your spreadsheet (or your favourite mathematical software) to do numerical integration, estimate e100 to 3 decimal places. 1

4. Given the following life table, Calculate the probability that

x lx

52 89,848

53 89,089

54 88,176

55 87,208

56 86,181

57 85,093

58 82,719

(a) a life age 52 lives to age 58 (b) a life age 52 dies between age 54 and 56 (c) a life age 55 dies before age 57 (d) a life age 52.3 dies between age 55 and 55.5, assuming UDD.