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  #91  
Old 02-15-2019, 11:29 AM
Bifurcation Theory Bifurcation Theory is offline
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Hello everyone,

Would I have enough time to study for the spring LTAM sitting if I started studying today? I will not be working the next month, and then I will be starting a new job that I will not have study hours to use. I do not have much going on in that month off, so most of that time would be devoted to studying. Thank you in advance
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  #92  
Old 02-16-2019, 11:48 AM
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I'm confused how a solution is calculating an annuity due with delta = .04. In the solution, they have the PV of the annuity equal to (1-e^-.04*T) / (.04/1.04). Is this incorrect? Shouldn't it be divided by just (1-e^.04)?
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  #93  
Old 02-16-2019, 12:40 PM
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Quote:
Originally Posted by Chappy View Post
I'm confused how a solution is calculating an annuity due with delta = .04. In the solution, they have the PV of the annuity equal to (1-e^-.04*T) / (.04/1.04). Is this incorrect? Shouldn't it be divided by just (1-e^.04)?
It would help if you precisely quoted the problem and its solution and its source.

What you wrote as the solution is weird---the numerator looks as though you're dealing with a continuous annuity with delta = 0.04, while the denominator looks like an annuity-due with i = 0.04. Your suggestion of dividing by (1-e^.04) would have you dividing by -i if delta = 0.04.
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  #94  
Old 02-16-2019, 12:51 PM
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The problem is from ASM MLC 15th edition (4th printing) question 31.3.

That was a typo, I meant I think it should be divided by (1-e^-0.04) = d
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Last edited by Chappy; 02-16-2019 at 12:57 PM..
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  #95  
Old 02-17-2019, 12:34 PM
Abraham Weishaus Abraham Weishaus is offline
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The error was fixed in later editions; the denominator should be 0.039211, as computed earlier in that solution.
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  #96  
Old 02-19-2019, 08:41 PM
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Okay, thanks! I have another question. This is just a concept check but the problem I have a question about is 38.1.

For a fully continuous 3-year endowment insurance on (x) premiums are determined by the equivalence principle. Calculate Var(2L | T >=2 ).

If this was a fully discrete problem, the answer would be zero correct?
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  #97  
Old 02-19-2019, 10:02 PM
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Originally Posted by Chappy View Post
Okay, thanks! I have another question. This is just a concept check but the problem I have a question about is 38.1.

For a fully continuous 3-year endowment insurance on (x) premiums are determined by the equivalence principle. Calculate Var(2L | T >=2 ).

If this was a fully discrete problem, the answer would be zero correct?
Correct. If we assume probabilities of dying are continuous, the probability of dying exactly at time T is 0. So the person will always either die before the end of the third year and receive the benefit at T=3 or they will survive more than 3 years and receive the endowment payment at T=3. Either way, there's a 100% chance of them receiving $3000.

No other chances of nothing. End of deal. No variation. Bada Bing Bada Boom. You die or you live but you still get the dough.
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  #98  
Old 02-22-2019, 08:17 AM
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Hows everyone doing on studying? Im currently on multiple lives and will try and finish before the end of march to give a full month of practice but I feel like times running out fast.
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  #99  
Old 02-23-2019, 03:37 PM
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I'm in a similar spot. I'm shooting to get done with pensions, profit measures and the SOA study notes by March 9th! A friend and I plan on taking last years LTAM as an assessment of where we're at.
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Old 02-25-2019, 04:16 PM
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Quote:
Originally Posted by Bifurcation Theory View Post
Hello everyone,

Would I have enough time to study for the spring LTAM sitting if I started studying today? I will not be working the next month, and then I will be starting a new job that I will not have study hours to use. I do not have much going on in that month off, so most of that time would be devoted to studying. Thank you in advance
I pulled this off in about 90 days last sitting, while working full time and not taking any days to study. Mind you I did have a solid foundation of the material from university a few years back. I would say if you have the discipline to study the entire month you have off you should be fine as long as you're the type that can understand and absorb material quickly.

I would say go for it, and if you aren't comfortable with the entire course by the registration deadline (march 25) then pass on this sitting and you'll have a head start for October. The sooner you can finish an exam the better.
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