For a fully continuous 15-year term life insurance of 1000 on (60) : (i) µ = 0.04 (ii) δ = 0.02 (iii) Annual net premium = 40. Calculate the probability that the future loss is greater than 10. Hint: Loss at issue random variable for this insurance is given by: L = ( 1000 v^T60 − 40¯aT60 if T60 ≤ 15 − 40¯a15 if T60 > 15

For a fully continuous 15-year term life insurance of 1000 on (60) : (i) µ = 0.04 (ii) δ = 0.02 (iii) Annual net premium = 40. Calculate the probability that the future loss is greater than 10. Hint: Loss at issue random variable for this insurance is given by: L = ( 1000 v^T60 − 40¯aT60 if T60 ≤ 15 − 40¯a15 if T60 > 15

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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Question

For a fully continuous 15-year term life insurance of 1000 on (60) :

(i) µ = 0.04

(ii) δ = 0.02

(iii) Annual net premium = 40.

Calculate the probability that the future loss is greater than 10.

Hint: Loss at issue random variable for this insurance is given by:

L = ( 1000 v^T60 − 40¯aT60 if T60 ≤ 15

− 40¯a15 if T60 > 15

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