May 2010 discussion

[(/iropracy]

Originally Posted by spencerhs5

i think for that one it asked for 3 years benefit to the bank? first benefit was .01* 100K*v
second benefit was .99*.01*50K*v^2
thrid was .99^2*.01*25K*v^3.... if i am remembering the benefits right.

There benefits were everything left that was owed (bank debt). That's why failure was in the middle.

If failure happened in the first year then 100+50+25 thousand was paid at time 1 and 50 + 25 thousand at time 2 etc.... with respective probabilities of failure and interest.

[jesusislord]

anything else that stood out? chi square matrix question was a little different. it took me a while, becuz i had to set up my own matrix. they usually just give you a nice neat matrix then you solve it from there. anyways i got an answer below the 5% sig level, so i choose E.

[aorl]

Originally Posted by jesusislord

well the question said the bank failures happened in the middle of the year. not sure what that meant.

I just took it as clear wording... for once. haha

If all payments happen at the end of the year, I think it's still straightforward.

[spencerhs5]

Originally Posted by jesusislord

anything else that stood out? chi square matrix question was a little different. it took me a while, becuz i had to set up my own matrix. they usually just give you a nice neat matrix then you solve it from there. anyways i got an answer below the 5% sig level, so i choose E.

i did the same, then second guessed myself and chose D, kinda a guess, but looking at the data with no actuarial knowledge it just looked too obvious that they were correlated, 720 were 0,0. im sure my original answer of E was right and karma is just out to get me

[aorl]

Originally Posted by jesusislord

anything else that stood out? chi square matrix question was a little different. it took me a while, becuz i had to set up my own matrix. they usually just give you a nice neat matrix then you solve it from there. anyways i got an answer below the 5% sig level, so i choose E.

I didn't like that one. I'm usually fine with chi-sq matrices, but occasionally I confuse myself, and I did so on that question. I had two matrices for the two assumptions, and I couldn't figure out which was the correct assumption. One gave me A, one gave me E. I believe I chose E.

[(/iropracy]

It looks like everyone had the same trouble I did. I am positive I got 19 right with two guess penalties.

[jesusislord]

yea i just created a matrix with 0s, 1s and 2s in the rows and columns. then filled in the approp numbers. i got like 7.11111 for the chi square stat. then if you look it up on the table it had 4 dof. so it was less than the 95% critical value. so i choose E.

[spencerhs5]

was the 10 pay whole life something special for h pay? i just did u/(u+d)=(1-e^(-nd))/d)*X and solved for X where d is delta not discount

[jesusislord]

did any1 try that stupid unbiased estimator question. i kept looking at it over and over. never did come up with a conclusion or a guess.

[(/iropracy]

Originally Posted by spencerhs5

was the 10 pay whole life something special for h pay? i just did u/(u+d)=(1-e^(-nd))/d)*X and solved for X where d is delta not discount

???