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Short-Term Actuarial Math Old Exam C Forum

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Old 06-19-2018, 06:16 PM
Actua... Actua... is offline
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Default ASM (16th) Exercise 11.3

Is the solution to ASM (16th edition) Exercise 11.3 correct? I've been looking for the corrections/errata but can't find it.

Question:

For a distribution from (a,b,0) class, you are given that p2/p1 = 0.25 and p4/p3 = 0.225. Determine p2.

Book Answer:

b = 0.1

a = 0.2

Therefore distribution is Neg Bi

r = 1.5

p2 = 0.05367

I am not getting this answer. Can someone confirm if this is right?

My answer:

b = 0.1

a = 0.2

Therefore distribution is Neg Bi

a = B / (1+B)

B = 0.2

b = (r-1)B / (1+B)

r = 1.6

p2 = 0.04316
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Old 06-19-2018, 11:44 PM
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Jim Daniel Jim Daniel is offline
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Quote:
Originally Posted by Actua... View Post
Is the solution to ASM (16th edition) Exercise 11.3 correct? I've been looking for the corrections/errata but can't find it.

Question:

For a distribution from (a,b,0) class, you are given that p2/p1 = 0.25 and p4/p3 = 0.225. Determine p2.

Book Answer:

b = 0.1

a = 0.2

Therefore distribution is Neg Bi

r = 1.5

p2 = 0.05367

I am not getting this answer. Can someone confirm if this is right?

My answer:

b = 0.1

a = 0.2

Therefore distribution is Neg Bi

a = B / (1+B)

B = 0.2

b = (r-1)B / (1+B)

r = 1.6

p2 = 0.04316
Your computation of B from 0.2 = a = B / (1 + B) is wrong. CHECK YOUR ANSWER! You claim B = 0.2, but 0.2 / (1 + 0.2) isn't a = 0.2.
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  #3  
Old 06-20-2018, 12:38 AM
Actua... Actua... is offline
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Dang.

Thanks for figuring this out.
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