ACMA 320 Actuarial Mathematics I Assignment 2

Due by 12:15 pm on Thursday, January 23, 2014 1. DHW textbook, Exercise 2.1 2. DHW textbook, Exercise 2.13(a) 3. DHW textbook, Exercise 2.14(a) and (d) 4. DHW textbook, Exercise 2.15(b) 5. Named after French mathematician Abraham De Moivre, De Moivres Law is another name for a survival model where the age-at-death random variable is uniformly distributed between age 0 and some limiting age !. a. Show that under De Moivres Law !!!!! is independent of n. o 1 b. Show that under De Moivres Law ex = e x ! exactly. 2 c. Suppose mortality follows De Moivres Law and the variance of T(50) is 300. Find !!!"!!!" . 6. Given that !! ! ! ! ! !" for ! ! ! ! !", calculate the 25-year temporary complete expectation of life for (50). 7. Define the n-year temporary curtate expectation of life of (x) as the expected value of the curtate future lifetime limited to the next n years:
! !! ! !!!

!!!!! ! ! !"# ! ! ! !

!
! !!

! ! !!!!! ! ! ! !!!!

a. Calculate !!"!!! if mortality follows De Moivres Law with limiting age 120. b. Show and interpret !!!!!!!!! ! !!!!! ! !! ! !!!!!!!!! ! !! 8. Which of the following statements are true? If false, give a correct expression by making minor changes to the right-hand side. a.
! ! !!

! ! !!!!

! !!!! ! !!!!!!

b.

! ! !!

! ! !!!!!! ! !!!! !! !!!!!!