21SMT-352_21BSS-1_ME2_ALL ACTUARIAL MATHEMATICS

ASSIGNMENT

DATE OF ALOTTMENT: 04/3/24 DATE OF SUBMISSION: 18/3/24

ALL QUESTIONS ARE COMPULSORY.

1 If x = 0.01908 + 0.001 (x − 70) for x  55, calculate 5q60.

2 Given that e50 = 30 and 50+t = 0.005 for 0  t  1, calculate the value of e51.

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3 Using ELT15 (Males) mortality (𝑒0 = 73.413, 𝑒21 = 53.497, 𝑒71 = 10.624), approximate

the curtate expectation of life for:

(a) a new-born baby

(b) a 21-year-old actuarial student

(c) a 70-year-old pensioner.

4 The ‘Very-ruthless Management Consultancy Company’ pays very high wages but
also has a very high failure rate, both from sackings and through people leaving. A
life table for a typical new recruit (with durations measured in years) is given below:
Duration No of lives
0 100,000
1 72,000
2 51,000
3 36,000
4 24,000
5 15,000
6 10,000
7 6,000
8 2,500
9 0
75 graduates started working at the company on 1 September this year. Calculate the
expected number of complete years that a graduate will complete with the company.
5 Complete the life table, simulated to resemble realistic Mortality data: