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 Long-Term Actuarial Math Old Exam MLC Forum

#121
03-26-2019, 04:41 PM
 SunnyDale SOA Join Date: Jul 2018 Posts: 14

For ASM manual, 1st edition 3rd printing, on page 1588, solution for Problem 1 (c), since the single premium is only paid to those who survived to at of year 5, shouldn’t the P on the left hand side of the equation be multiplied by probability of surviving to end of year 5? Thanks.
#122
03-26-2019, 07:57 PM
 Abraham Weishaus Member SOA AAA Join Date: Oct 2001 Posts: 7,233

It's also paid to those who die. Reread the first paragraph of the question - those who die get the NP reserve in addition to the face amount, and the NP reserve is P.
#123
03-27-2019, 02:23 PM
 bigmac SOA Join Date: Aug 2018 Posts: 24

how did the real ltam exam compare to the adapt exams? I don't want to waste time trying to improve my MC a ton if the WA are worth more
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#124
03-27-2019, 03:38 PM
 tkt Member CAS SOA Join Date: Jun 2011 Location: Des Moines College: Drake University Posts: 521

Quote:
 Originally Posted by bigmac how did the real ltam exam compare to the adapt exams? I don't want to waste time trying to improve my MC a ton if the WA are worth more
Many of our customers thought that the difficulty of the actual exam is comparable to Adapt exams from levels 3 - 6. Thus, we recommend getting comfortable with questions from these levels.

Make sure you invest sufficient time preparing for written-answer questions. You can find all tips on tackling WA questions, and relevant past exam or sample MLC WA questions by topics in "LTAM Written Answer Question" under Resources. All 26 sample SOA LTAM WA questions with video solutions are there as well. Last but not least, you can find 3 sample WA exams that you can practice from as you get closer to the exam date.

All the best!
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#125
03-27-2019, 08:44 PM
 SunnyDale SOA Join Date: Jul 2018 Posts: 14

Quote:
 Originally Posted by Abraham Weishaus It's also paid to those who die. Reread the first paragraph of the question - those who die get the NP reserve in addition to the face amount, and the NP reserve is P.
Thanks for the explanation!

For the same practice exam, on page 1459, problem 4(c), I thought the number calculated by (a)/(b) is the annual premium and to get to the monthly premium the number will need to be decided by 12? Would you please help me understand that?

Thanks!
#126
03-27-2019, 09:00 PM
 Abraham Weishaus Member SOA AAA Join Date: Oct 2001 Posts: 7,233

(b) was already multiplied by 12, so when you divide by it, you are dividing the annual premium by 12. Question (b) says "1 per month", not 1 per year.
#127
03-30-2019, 12:53 PM
 SweepingRocks Member SOA Join Date: Jun 2017 College: Bentley University (Class of 2019ish) Posts: 155

I feel like this is a bit of a silly question. I've been doing some WA questions and when the question says something like "You should calculate the mean to the nearest 100". If that were part of a question and the next part was to ask something like "find the 90th percentile" would we be expected to use the mean calculated to the nearest 100, or the exact value?
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#128
03-30-2019, 02:48 PM
 SunnyDale SOA Join Date: Jul 2018 Posts: 14

To calculate the expected present value of future retiree benefits for those who retire at age 62 for an employee currently age 60, why do we calcaulte p62, 2p62,3p62 for retirement age 63, 64, 65 but not 2p60, 3p60, 4p60, 6p60 since the current age is 60? (ASM 1st edition 3rd printing page 1468, problem 2(b)).

Thanks!
#129
03-30-2019, 09:55 PM
 Abraham Weishaus Member SOA AAA Join Date: Oct 2001 Posts: 7,233

Quote:
 Originally Posted by SunnyDale To calculate the expected present value of future retiree benefits for those who retire at age 62 for an employee currently age 60, why do we calcaulte p62, 2p62,3p62 for retirement age 63, 64, 65 but not 2p60, 3p60, 4p60, 6p60 since the current age is 60? (ASM 1st edition 3rd printing page 1468, problem 2(b)). Thanks!
We do consider probability of survival from age 60 in the last line, where we multiply by 0.2. You could multiply 1, p62, 2p62, and 3p62 by 0.2 to make them 2p60 3p60, 4p60, and 5p60, but why do the extra work? It's easier to just multiply by 0.2 once, at the end.

Last edited by Abraham Weishaus; 03-30-2019 at 09:59 PM..
#130
03-30-2019, 10:17 PM
 SunnyDale SOA Join Date: Jul 2018 Posts: 14

Quote:
 Originally Posted by Abraham Weishaus We do consider probability of survival from age 60 in the last line, where we multiply by 0.2. You could multiply 1, p62, 2p62, and 3p62 by 0.2 to make them 2p60 3p60, 4p60, and 5p60, but why do the extra work? It's easier to just multiply by 0.2 once, at the end.
I see it now! Thanks!!