ASM 13 ed, Section 63: Interest Rate Risk

Can someone tell why this is wrong:



Var(Z|q) =E(Z^2|q) - [E(Z|q)]^2 with E(Z|q)=1000*q*v+1000*p*v^2, and E(Z^2|q)=1000*q*v^2+1000*p*v^4



The manual says Var(Z|q) = 1000^2*q*p*[(v-v^2)]^2 and I agree but why my approach is not correct.



Thanks

ASM 13 ed, Section 63: Interest Rate Risk

ASM 13 ed, Section 67.2 Profit Tests, page 1290

For the first and the last bullet points on the page I think you should replace Face Amount, FA with Net Amount at Risk, NAR because if you don't EDB for Type A policy would be the mortality rate times (FA + AV + S. Exp) which is not correct.



For Type B policy NAR = FA but for Type A policy NAR = FA - AV.



Thank you

ASM 13 ed, Section 67.2 Profit Tests, page 1290

ASM 13 ed, Section 66A: Profit Tests: Participating Insurance

Can anyone help me with these two questions:



Why in the calculation of EDB you don't take into account the probability that the policyholder survived death and withdrawal in the previous years. Similar question for ESB as well.



How did you know that we were given q' instead of q for the mortality.



Thanks

ASM 13 ed, Section 66A: Profit Tests: Participating Insurance

ASM 13 ed, Example 61E: Pension Mathematics

There are calculation errors in the present value of the accrued retirement benefit and the projected retirement benefit:



1. The answer must be 140,023.2543.



2. The answer must be 191,114.8404



Thanks.

ASM 13 ed, Example 61E: Pension Mathematics

ASM 13 ed, Example 54E: Multiples Live, Last Survivor Probabilities

For two lives with lifetime variables S and T, you are given that

f(s,t)= (s+t)/125 for 0<s<5 and 0<t<5.

Calculate the probability that the last survivor status (2:2) survives on year.



Can someone tell why my solution is wrong. Here is my solution:



Probability that the last survivor status (2:2) survives on year=p2+p2-p2:2 = 59/63



p2=S(3)/S(2) =13/18 where is S(x)=Integral(x to 5) of f(s)ds=(50-x^2-5x)/50 with



f(s) is the marginal of s= Integral(0 to 5) of f(s,t)dt=(2s+5)/50



p2:2 = 32/63 previously calculated.



Thanks

ASM 13 ed, Example 54E: Multiples Live, Last Survivor Probabilities

ASM 13 ed, Example 45E: Markov Chains

Why the premiums are calculated with only Ax(02) and not Ax(12). Can someone help.



Thanks

ASM 13 ed, Example 45E: Markov Chains