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 CAS 3 - specific material Please keep posts regarding material common to both exams in the upper forum

#31
05-07-2010, 06:22 PM
 (/iropracy Member CAS Join Date: Nov 2008 Location: East College: Post Graduate Posts: 374

Quote:
 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.
#32
05-07-2010, 06:24 PM
 jesusislord Member CAS Join Date: Aug 2006 Studying for none Posts: 1,292

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.
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#33
05-07-2010, 06:25 PM
 aorl Member Join Date: May 2007 Location: New Jersey Studying for fun Favorite beer: cold Posts: 168

Quote:
 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.
#34
05-07-2010, 06:26 PM
 spencerhs5 Member Join Date: Jan 2007 Posts: 1,051

Quote:
 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
#35
05-07-2010, 06:27 PM
 aorl Member Join Date: May 2007 Location: New Jersey Studying for fun Favorite beer: cold Posts: 168

Quote:
 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.
#36
05-07-2010, 06:28 PM
 (/iropracy Member CAS Join Date: Nov 2008 Location: East College: Post Graduate Posts: 374

It looks like everyone had the same trouble I did. I am positive I got 19 right with two guess penalties.
#37
05-07-2010, 06:30 PM
 jesusislord Member CAS Join Date: Aug 2006 Studying for none Posts: 1,292

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.
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#38
05-07-2010, 06:30 PM
 spencerhs5 Member Join Date: Jan 2007 Posts: 1,051

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
#39
05-07-2010, 06:31 PM
 jesusislord Member CAS Join Date: Aug 2006 Studying for none Posts: 1,292

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.
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God is real and His love is unconditional.
#40
05-07-2010, 06:31 PM
 (/iropracy Member CAS Join Date: Nov 2008 Location: East College: Post Graduate Posts: 374

Quote:
 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
???

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