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Seat Number

c:o:IrD
* 3 4 17*

ST-402
Actuarial Statistics
(212802)

P. Pages: 3
Time: Three Hours Max. Marks: 60

Instructions to Candidates:
1. Do not write anything on question paper except Seat No.
2. Graph or diagram should be drawn with the black ink pen being used for writing
paper or black HB pencil.
3. Students should note, no supplement will be provided.
4. All questions are compulsory.
5. Each question carries 12 marks.
6. Figures to the right indicates full marks.
7. Use of calculator & statistical table is allowed.

1. Attempt any three. 3x4

=12
a) Find E (z) and V (z), where z is present value random variable for the n-year
term insurance with a unit benefit payable at the end of the year of death.

b) Using the assumption of a uniform distribution of deaths in each year of age &
given that:
A45 = 0.1875, 2A45 = 0.09412, with interest at the effective annual rate of 6%,
Calculate:

c) If L is the loss at issue LV. for a fully discrete whole life insurance of 1 issued to
(49), then calculate p and E (L) on the basis of the following information.
A49 = 0.23882, 849 = 13.4475 2A49 = 0.8879, i = 0.06 & var (L) = 0.10.

d) Give the various characteristics of insurable risk.

e) Suppose the prob of damage to house in a year is 0.1. ThE:!prob dist" of positive
loss is uniform (0, 100). The owner of the property has a utility function given by
u(w)=2Ioge(W). Calculate the expected loss and the maximum insurance
premium G, the owner will pay for complete insurance when the wealth of the
individual is 500 units & 1000 units. Comment on the values of G for different
values of wealth w.

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2. Attempt any three. 3x4

=12
a) Write a short note on : collective risk models.

b) For a certain insect population, the prob qx obtained for five weeks are as
follows: qo = 0.3, q1 = 0.1, q2 = 0.2, q3 = 0.4, q4 = 0.7 & q5 = 1. Taking to = 100,
construct life table with values for ex, dx, Lx, Tx & ex. Also interpret the values
of La & T3.

c) Prove that:
a) m1Ax': fi1 = mEx' Ax' +m: fi1
b) m1Ax :fi1= mEx,Ax+m:n1
c) m1Ax=mEx.Ax+m

d) Explain:
i) Percentile premium. ii) Exponential premium.
iii) Equivalence principle premium.

e) It is given that: /) = 6% and actuarial present value at age 27 of a unit benefit to

be paid at the moment of death in a whole life insurance with /) is 0.5321 and
with 25 is 0.2935. Find the actuarial present value at age 27 of a continuous life
annuity payable at the rate of 10,000 per annum. Also find standard deviation of
annuity.

3. Attempt any three. 3x4

=12
a) Suppose life length random variable x follows U (0, 100). Find the pdf of T (25).

b) Find the amount to which $ 10,000 will accumulate after 10 years if rate of interest
IS:
i) 5% as a force of interest. ii) 5% as effective rate of interest.
iii) 5% per annum payable quarterly.

c) Prove that:
i) m1ax > m1ax >m1ax
ii) a~ =1+a~
x:n+11 x:n1
iii) a x:T1= ax

iv) a x:n1> an:n1> aX:n1 for all n.

d) Write a note on fully continuous premiums.

e) i) It is given that: Ax:n1 = 0.20 & d = 0.08. Calculate n-1vx:n1'

ii) It is given that. iix+t = 10, IVx = 0.100, t+1vx = 0.127 & Px+t+1 = 0.043.
Find d.

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4. Attempt any three. 3x4

=12
2
a) Suppose life length LV.X has a survival function s( x) = 1- (x /100), if 0 $ x < 10,

then find;
i) Fx (x) ii) 5P4
iii) pdf ofT (4).

b) Write a note on Retrospective Reserve in fully continuous case.

c) Write a note on utility function.

d) Explain the brief:

i) Speculative risk. ii) Pure risk.

e) L is the loss at issue LV. for a fully continuous whole life insurance of 1 issued to
(30) with the net premiums determined by the equivalence principle. It is given
that. A50 = 0.7, 2A30 = 0.3 and var (L) = 0.2. Calculate 209(A30),

5. Attempt any two. 6x2

=12
a) Suppose the life length LV. x is modelled by a uniform distribution over (0, 100).
Find 50,000. Ax, for ages x = 25, 30, 35,40,45 and 50. Use 0 = 0.05.

b) Suppose life length LV.X is modelled by a dist" with force of mortality as specified
below:
0.01 ,if 0 < s < 15
f.ls = 0.02, if 15 $ s < 25
1 0.03,
Find corresponding
if 5 ~ 25
S (x), f (x) and pdf of T (20).

c) It is given that: q28 =0.135, q29 =0.146, Q30=0.159, q31 =0.173, Q32=0.188
& i = 0.05. Find APV of a 5-year temporary annuity due & immediate issued to
(28), at the rate of 5000 per annum. Also find APV of a 5-year temporary annuity
payable continuously at the rate of 5000 per annum, under the assumption of
uniformity of deaths in a unit age interval. Compare three values.

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