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For a disability insurance claim: (i) The claimant will receive payments at the rate of 20,000 per year, payable continuously as long as she remains disabled. (ii) The length of the payment period in years is a random variable with the gamma distribution with parameters a= 2 and 0 = 1. That is f(t) = te-t (iii) Payments begin immediately. (iv) 8 = 0.05 Calculate the actuarial present value of the disability payments at the time of disability. (A) 36,400 (E) 40,000 (B) 37,200 (C) 38,100 (D) 39,200

For a disability insurance claim: (i) The claimant will receive payments at the rate of 20,000 per year, payable continuously as long as she remains disabled. (ii) The length of the payment period in years is a random variable with the gamma distribution with parameters a= 2 and 0 = 1. That is f(t) = te-t (iii) Payments begin immediately. (iv) 8 = 0.05 Calculate the actuarial present value of the disability payments at the time of disability. (A) 36,400 (E) 40,000 (B) 37,200 (C) 38,100 (D) 39,200

MATLAB: An Introduction with Applications
MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
Section: Chapter Questions
Problem 1P
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For a disability insurance claim: (i) The claimant will receive payments at the rate of 20,000 per year, payable continuously as long as she remains disabled. (ii) The length of the payment period in years is a random variable with the gamma distribution with parameters a= 2 and 0 = 1. That is f(t) = te-t (iii) Payments begin immediately. (iv) 8 = 0.05 Calculate the actuarial present value of the disability payments at the time of disability. (A) 36,400 (E) 40,000 (B) 37,200 (C) 38,100 (D) 39,200
Transcribed Image Text:For a disability insurance claim: (i) The claimant will receive payments at the rate of 20,000 per year, payable continuously as long as she remains disabled. (ii) The length of the payment period in years is a random variable with the gamma distribution with parameters a= 2 and 0 = 1. That is f(t) = te-t (iii) Payments begin immediately. (iv) 8 = 0.05 Calculate the actuarial present value of the disability payments at the time of disability. (A) 36,400 (E) 40,000 (B) 37,200 (C) 38,100 (D) 39,200
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