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#1
05-02-2004, 02:43 PM
 Black Mage Member SOA AAA Join Date: Jul 2003 Location: behind you Studying for Nothing ever again! Favorite beer: Heffenwiesen Posts: 556
Is utility of wealth on the Exam?

Hello,

I never saw this in the old exams, I didn't see it mentioned in arch-3 either, but the questions in Actex 2002 and BPP sometimes refer to "utility of wealth" and the indifference principle. Should we know this? Is this on the syllabus?

#2
05-02-2004, 03:04 PM
 GuyInWestGrove Guest Posts: n/a

Dunno whether you need to know it for exam 3, but it sounds like the indifference curves and its equivalent "theory of cardinal utility" from Exam 2, Micro. (Chapter 3 of Landsburg).
#3
05-02-2004, 04:21 PM
 Black Mage Member SOA AAA Join Date: Jul 2003 Location: behind you Studying for Nothing ever again! Favorite beer: Heffenwiesen Posts: 556

It's actually E(e^aw)=1

It's like finding E(L)=0, but since it's in the exponent it's E(e^aw)=1, where a is a defined constant.

I ain't putting any more time into it, theres just so much on this exam to go over before 5/13!
#4
05-02-2004, 04:24 PM
 E Eddie Smith SOA AAA Join Date: May 2003 Location: Geographically, the Southeast, but virtually, everywhere. College: UGA Posts: 8,011

In my opinion, utility of wealth is one of those topics that would only be important for someone trying to get 40/40 right on the exam.
#5
05-02-2004, 04:28 PM
 Brutè Member Join Date: Dec 2001 Location: The 'shoe Posts: 2,330

Quote:
 Originally Posted by E In my opinion, utility of wealth is one of those topics that would only be important for someone trying to get 40/40 right on the exam.
Even then its importance is suspect.

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