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Short-Term Actuarial Math Old Exam C Forum

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Old 01-01-2018, 01:59 PM
verdun11 verdun11 is offline
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Default SOA 307 Question 16

Had a question about the solution. In the solution to this question, they calculate the variance for the probability that someone survives for 3 years, not that they die sometime over the 3 year period. Why are these values the same?

Here is the question and solution: https://imgur.com/a/Scccp

Thanks for your help!
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Old 01-01-2018, 02:48 PM
Academic Actuary Academic Actuary is online now
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Quote:
Originally Posted by verdun11 View Post
Had a question about the solution. In the solution to this question, they calculate the variance for the probability that someone survives for 3 years, not that they die sometime over the 3 year period. Why are these values the same?

Here is the question and solution: https://imgur.com/a/Scccp

Thanks for your help!
V(q) = V(1-p) = V(p)
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