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ShortTerm Actuarial Math Old Exam C Forum 

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#12




I have a question about Sample Question 207. I understand the solution that the SOA gives, but it's not how I tried to do the problem and seems inconsistent with how we usually solve payment per payment problems. I used the formula for e(d), the mean excess loss, which is the expected payment per payment. Here is my solution. Please tell me what I'm doing wrong or why this doesn't work. Note that E[X ^ 4] is not the 4th raw moment, but the limited expected value.
e(4) = (E[X]E[X ^ 4])/S(4) The SOA and I both agree that S(4) = 0.84 E[X] = the integral of 0.02x^2 from 0 to 10, which is 6.666667 E[X ^ 4] = (the integral of 0.02x^2 from 0 to 4)*F(4) + 4*S(4) = .4266667*.16 + 4*.84 = 3.42826667 So then e(4) = (6.666667  3.428256)/0.84 = 3.855238488 I am calculating the INSURER'S expected payment per payment. That is what they are asking for, right? 
#14




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Btw, your question may be moved I think this thread was mainly to point people to where other questions are answered.
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Last edited by Celtics4Life; 10032012 at 11:01 AM.. Reason: typo 
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#16




You have done a great job to collect all these. Appreciate wholeheartedly
Thanks so much

#17




SOA 289  question 196
Could you please post a detailed explanation for SOA 289  question 196?
I do not understand why in the official answer, there is no f(x) for loss of 300 (with policy limit of 20,000) and how do you deal with loss >10,000 with policy limit of 10,000? thanks in advance. 
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#19




#260
Stupid question, In #260, the answer used f(5) to calculate p(x=5 l theta=8). Why? Thanks.

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