Actuarial Outpost Spring 2019 LTAM Progress Thread
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 Long-Term Actuarial Math Old Exam MLC Forum

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#91
02-15-2019, 11:29 AM
 Bifurcation Theory SOA Join Date: Feb 2019 Posts: 1

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
#92
02-16-2019, 11:48 AM
 Chappy Member SOA Join Date: Mar 2016 Location: Chicago Studying for MLC College: University of Michigan Posts: 66

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
02-16-2019, 12:40 PM
 Jim Daniel Member SOA Join Date: Jan 2002 Location: Davis, CA College: Wabash College B.A. 1962, Stanford Ph.D. 1965 Posts: 2,716

Quote:
 Originally Posted by Chappy 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
02-16-2019, 12:51 PM
 Chappy Member SOA Join Date: Mar 2016 Location: Chicago Studying for MLC College: University of Michigan Posts: 66

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..
#95
02-17-2019, 12:34 PM
 Abraham Weishaus Member SOA AAA Join Date: Oct 2001 Posts: 7,233

The error was fixed in later editions; the denominator should be 0.039211, as computed earlier in that solution.
#96
02-19-2019, 08:41 PM
 Chappy Member SOA Join Date: Mar 2016 Location: Chicago Studying for MLC College: University of Michigan Posts: 66

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
02-19-2019, 10:02 PM
 SweepingRocks Member SOA Join Date: Jun 2017 College: Bentley University (Class of 2019ish) Posts: 155

Quote:
 Originally Posted by Chappy 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
02-22-2019, 08:17 AM
 bigmac SOA Join Date: Aug 2018 Posts: 24

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
02-23-2019, 03:37 PM
 cknight69 SOA Join Date: Dec 2018 College: University of Nebraska - Senior Posts: 1

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.
#100
02-25-2019, 04:16 PM
 gaudettj Member SOA Join Date: Nov 2013 Location: Canada Studying for FAP / C Favorite beer: All of the Above Posts: 246

Quote:
 Originally Posted by Bifurcation Theory 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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