Actuarial Outpost > SoA Grasp Question 39, Question 40 Errata and misc
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#1
09-02-2008, 12:54 PM
 Julietn528 Member SOA AAA Join Date: May 2004 Location: Chicago Studying for Exam DP--Group and Health College: Northwestern Posts: 220
Grasp Question 39, Question 40 Errata and misc

Question 39:

Male: (.05*.75)+(.25*.86) + .30*1.08 +.05 *1.39

The female should also have a plus sign instead of a multiply sign between the third and fourth terms.

I am also getting a different answer for the multiplicative factors; I am getting,

.646 and .373 for the average age factors instead of .9938 and 1.0657

is that correct? Or am I making an error?

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Question 40:

For B you solve the male capitation rate for a male under 40 which is 16.47;

when this is carried to the next page to calculate the male capitation rate the number that is used is 16.64; but this should still be 16.47, correct?
#2
09-02-2008, 01:06 PM
 MarsLasar Member SOA Join Date: Jul 2005 Posts: 4,492

Quote:
 Originally Posted by Julietn528 Question 39: Should read: Male: (.05*.75)+(.25*.86) + .30*1.08 +.05 *1.39 The female should also have a plus sign instead of a multiply sign between the third and fourth terms. I am also getting a different answer for the multiplicative factors; I am getting, .646 and .373 for the average age factors instead of .9938 and 1.0657 is that correct? Or am I making an error? ---------------------------------------------------------------- Question 40: For B you solve the male capitation rate for a male under 40 which is 16.47; when this is carried to the next page to calculate the male capitation rate the number that is used is 16.64; but this should still be 16.47, correct?
39) You need to divide 0.646 by (0.05+0.25+0.3+0.05) and then you will get the correct value of 0.9938.

40) 16.47 is not correct. 16.64 is the right number.
#3
09-02-2008, 01:39 PM
 Julietn528 Member SOA AAA Join Date: May 2004 Location: Chicago Studying for Exam DP--Group and Health College: Northwestern Posts: 220

I'm confused, can you right out the full equation for 39 and 40 to get to .9938 and to get to 16.64?
#4
09-02-2008, 01:47 PM
 MarsLasar Member SOA Join Date: Jul 2005 Posts: 4,492

Old Age Factors for Old Product (Male) = [.05*.75+.25*.86+.3*1.08+.05*1.39]/[.05+.25+.3+.05] = 0.9938

15.80 = X*[.2+.1*1.2/1.01+.2*1.15/1.01+.1*1.27/1.01+.4*.7/1.01]
=> X = 16.64
#5
09-02-2008, 10:18 PM
 Julietn528 Member SOA AAA Join Date: May 2004 Location: Chicago Studying for Exam DP--Group and Health College: Northwestern Posts: 220

Quote:
 Originally Posted by MarsLasar Old Age Factors for Old Product (Male) = [.05*.75+.25*.86+.3*1.08+.05*1.39]/[.05+.25+.3+.05] = 0.9938 15.80 = X*[.2+.1*1.2/1.01+.2*1.15/1.01+.1*1.27/1.01+.4*.7/1.01] => X = 16.64
Okay I see, so there were some typos; thanks for clarifying.

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