
#141




Quote:
__________________
And NUH is the letter I use to spell Nutches Who live in small caves, known as Nitches, for hutches, These Nutches have troubles, the biggest of which is the fact there are many more Nutches than Nitches. 
#143




In example 63B, after finding E(Lq(75)) the solution for finding the variance uses Bernoulli simplification. I dont understand how Bernoulli applies here since the probabilities are 0.02 and 0.03 and not 0.3 and 0.7
__________________

#144




Can you post the actual question? I assume it's one of the q=.02 With probability .7, etc. For these questions I always just make a table for E(L) and var(L) under each condition with the probabilities of .7 and .3 and since it's conditional on q you have to use the E(Var) + Var(E) formula. Say its 1 year term of 1000 with q=.03 with prob. 7 and q=.02 with prob .3, i=.06.. then the expected loss is 1000*.03/1.06  P or 1000*.02/1.06  P. There's only two possible outcomes so the var(E) portion can be done by that shortcut. But without knowing the question I have no idea. But I mean regardless of any of that the probabilities (weights in this case) will always sum up to 1.
__________________
And NUH is the letter I use to spell Nutches Who live in small caves, known as Nitches, for hutches, These Nutches have troubles, the biggest of which is the fact there are many more Nutches than Nitches. 
#148




It wouldn't surprise me to see a question on it. They tend to mix up the questions and they haven't tested it in a while.
__________________
And NUH is the letter I use to spell Nutches Who live in small caves, known as Nitches, for hutches, These Nutches have troubles, the biggest of which is the fact there are many more Nutches than Nitches. Last edited by PerpetualMotion; 04102018 at 10:33 PM.. 
#149




Quote:
In all seriousness though, we're only two weeks out, if you can make the time to at least memorize some concepts and formulas, that could get you some partial credit on a written answer question. But if it's a choice between this or universal life, I'd spend my time on UL. 
#150




Quote:

Thread Tools  Search this Thread 
Display Modes  

