Actuarial Outpost Guo's solution to Fall 2017 MLC in one pdf
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#1
02-09-2018, 09:59 AM
 Yufeng Member Join Date: Sep 2004 Posts: 134
Guo's solution to Fall 2017 MLC in one pdf

I compared my solution with the SOA's. Everything matches except for WA Q3.

I think my solution is the correct because it agrees with ALMCR Exercise 10.11.

If you solved WA Q3 my way and failed MLC by a small margin, I recommend that you email SOA explaining that your approach uses the AMLCR Exercise 10.11's approach. That might turn the tide.

Here's my solution in one pdf:

http://deeperunderstandingfastercalc...ll_2017MLC.pdf
#2
02-09-2018, 11:46 AM
 Jim Daniel Member SOA Join Date: Jan 2002 Location: Davis, CA College: Wabash College B.A. 1962, Stanford Ph.D. 1965 Posts: 2,688

WA #3 says to assume (unrealistically) that there are no exits BEFORE retirement, and that the ILT is for use AFTER retirement. Thus when you compute the liability at 60 for retirement at 65 your 5p60 should equal 1 rather than the value you got from the ILT in your solution.

You still probably get a 10.

Quote:
 Originally Posted by Yufeng I compared my solution with the SOA's. Everything matches except for WA Q3. I think my solution is the correct because it agrees with ALMCR Exercise 10.11. If you solved WA Q3 my way and failed MLC by a small margin, I recommend that you email SOA explaining that your approach uses the AMLCR Exercise 10.11's approach. That might turn the tide. Here's my solution in one pdf: http://deeperunderstandingfastercalc...ll_2017MLC.pdf
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#3
02-19-2018, 12:53 PM
 mSed84 SOA Join Date: Jun 2013 College: Johns Hopkins University Alumnus Posts: 21
Q5

Why did you use force of mortality in solving question 5 instead of using 80% of the mortality rate? I.e. you used .8 x u, why not .8 x qx ?
#4
02-19-2018, 01:59 PM
 mSed84 SOA Join Date: Jun 2013 College: Johns Hopkins University Alumnus Posts: 21
WA 3

Question 3 mentions specifically that "There are no exits before retirement" and "Mortality after retirement follows the illustrative life table".