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 Long-Term Actuarial Math Old Exam MLC Forum

#131
03-31-2019, 10:45 PM
 SunnyDale SOA Join Date: Jul 2018 Posts: 29

Would someone please explain the concept of “interest rate used for cash flows within a year in the profit test”? According to the solution, the premium paid at beginning of year is accumulated to the end of the year at that interest rate and then discounted back to issue at the discount rate. What’s the reason for the one year accumulation? Thanks!
#132
04-01-2019, 01:12 AM
 SweepingRocks Member SOA Join Date: Jun 2017 College: Bentley University (Class of 2019ish) Posts: 187

So let me get this straight, this notation: https://imgur.com/a/4j51oxs is calculated by integrating for t between 0 and 10 for tP75

But this notation: https://imgur.com/a/pmrJt3K is calculated almost like an endowment, where we find the expected lifetime for someone for the first 20 years, then we add the product of 20P40 and 20?

Oh boy, I friggen love notation, not confusing at all
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"I think you should refrain from quoting yourself. It sounds pompous." - SweepingRocks
#133
04-01-2019, 08:12 AM
 Gandalf Site Supporter Site Supporter SOA Join Date: Nov 2001 Location: Middle Earth Posts: 31,345

No. The meanings are the same. You do not do equivalent calculations and then add something for one. Probably different integrals in what you are looking at.
#134
04-01-2019, 08:31 AM
 birdman332 SOA Join Date: Jun 2017 Posts: 27

Quote:
 Originally Posted by SweepingRocks 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?
You can use either value for the next calculations, as long as you are showing your work. They ask to match these rounded values a lot in case you can't do the first few calculations on a problem, but you can do the later parts with the rounded values given.
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#135
04-01-2019, 11:06 AM
 hec-actu-tombe SOA Join Date: Mar 2018 Posts: 26

Hi! I'm done with the ASM's 75 chapters (that was long). To everyone who took LTAM/MLC before or is studying for this sitting, what is your study strategy concerning practice exams? How many problems do you do each day?

Also, is Adapt a good help for LTAM or do you focus only on previous exams?

Thank you!
#136
04-01-2019, 09:25 PM
 SweepingRocks Member SOA Join Date: Jun 2017 College: Bentley University (Class of 2019ish) Posts: 187

Quote:
 Originally Posted by Gandalf No. The meanings are the same. You do not do equivalent calculations and then add something for one. Probably different integrals in what you are looking at.
How do I interpret those symbols? Is it the expected lifetime of someone maxed at T years? When I saw that it was just the integral from 0 to t years for tPx, I assumed it was the expected lifetime of someone who dies within t years. Is that incorrect?

Edit: OKAY I'm stupid, if it's the integral from 0 to 10, so at 10, it'll just be the probability of surviving 10 years, which is inclusive to everyone surviving past 10 years! I understand! Gandalf, you're a wizard!
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FM P MFE STAM LTAM Modules: 1 2 3 4 IA [In Progress]

Former Disney World Cast Member, currently no idea what I'm doing

"I think you should refrain from quoting yourself. It sounds pompous." - SweepingRocks
#137
04-05-2019, 04:10 PM
 anothermathteacher SOA Join Date: Aug 2017 Posts: 25
ASM Manual, PE 2, WA 5

On part b of WA #5 of the second practice exam in the ASM Manual, the solution uses a multiple decrement mortality rate q(50)= 0.592%.

Where does this value come from? It is not explicitly given in the problem at the solution does not show how to come up with the value.

Thank you.
#138
04-05-2019, 05:55 PM
 Abraham Weishaus Member SOA AAA Join Date: Oct 2001 Posts: 7,250

q50=0.00592 was mistakenly omitted from the question. I've posted an erratum.
#139
04-06-2019, 02:43 PM
 Seasplash Member CAS SOA Join Date: Jun 2014 Location: Arlington, VA Studying for MLC College: Cal Poly San Luis Obispo Posts: 397

Can anyone explain why for Question 15 of the 2018 Exam LTAM MC, we would subtract 1/2 x (1 - nEx) for the third step in the SOA solutions. Does it have anything to do with the fact that this is a continuous temporary annuity? If so, an explanation would be appreciated.

I also took a look at Guo's solution to Question 15 and fail to see how he could say the answer is A from what he did. His solution is in here:
http://deeperunderstandingfastercalc...018_MC_sol.pdf
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#140
04-06-2019, 02:53 PM
 Seasplash Member CAS SOA Join Date: Jun 2014 Location: Arlington, VA Studying for MLC College: Cal Poly San Luis Obispo Posts: 397

Quote:
 Originally Posted by Seasplash Can anyone explain why for Question 15 of the 2018 Exam LTAM MC, we would subtract 1/2 x (1 - nEx) for the third step in the SOA solutions. Does it have anything to do with the fact that this is a continuous temporary annuity? If so, an explanation would be appreciated. I also took a look at Guo's solution to Question 15 and fail to see how he could say the answer is A from what he did. His solution is in here: http://deeperunderstandingfastercalc...018_MC_sol.pdf
Never mind I think I got it. If it's a continuous annuity then that means the limit of (m-1)/2m as m approaches infinity is 1/2.
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