Question

For a whole life insurance on (60), you are given: • Mortality follows De Moivre's Law with $\omega = 90$ • $i = 0.04$ What is the variance of this whole life insurance? A 0.0346 B 0.0353 C 0.0361 D 0.0374 E 0.0389

Name: for a whole life insurance on 60 you are given mortality follows de moivres law with omega 90 i 004 what is the variance of this whole life insurance a 00346 b 00353 c 00361 d 00374 e 00389 05147
Uploaded: 2021-12-22T14:03:30-08:00
Duration: 2 min 2 s
Channel: Thuc Nguyen
Description: for a whole life insurance on 60 you are given mortality follows de moivres law with omega 90 i 004 what is the variance of this whole life insurance a 00346 b 00353 c 00361 d 00374 e 00389 05147

          For a whole life insurance on (60), you are given:
• Mortality follows De Moivre's Law with $\omega = 90$
• $i = 0.04$
What is the variance of this whole life insurance?
A 0.0346
B 0.0353
C 0.0361
D 0.0374
E 0.0389

for a whole life insurance on 60 you are given mortality follows de moivres law with omega 90 i 004 what is the variance of this whole life insurance a 00346 b 00353 c 00361 d 00374 e 00389 05147

Added by Kelly T.

Elementary Statistics a Step by Step Approach

Allan G. Bluman 9th Edition

Instant Answer

Solved by Expert Thuc Nguyen

12/22/2021

Step 1

Under De Moivre's law with $\omega = 90$, the survival function is given by: ${}_tp_x = \frac{\omega - x - t}{\omega - x}$ for $0 \le t \le \omega - x$ In this case, $x = 60$ and $\omega = 90$, so ${}_tp_{60} = \frac{90 - 60 - t}{90 - 60} = \frac{30 - t}{30}$ for Show more…

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For a whole life insurance on (60), you are given: • Mortality follows De Moivre's Law with $\omega = 90$ • $i = 0.04$ What is the variance of this whole life insurance? A 0.0346 B 0.0353 C 0.0361 D 0.0374 E 0.0389