excans:304abffd63

Answer: E

The distribution is binomial with 10,000 trials.

[[math]] \begin{aligned} & \operatorname{Var}\left[L_{15}\right]=n p q=10,000\left({ }_{15} p_{50}\right)\left({ }_{15} q_{50}\right) \\ & { }_{15} p_{50}=e^{\left[-A(15)-\frac{B}{\ln C} c^{50}\left(c^{15}-1\right)\right]}=0.837445 \\ & { }_{15} q_{50}=1-{ }_{15} p_{50}=0.162555 \end{aligned} [[/math]]

[math]\operatorname{Var}\left[L_{15}\right]=10,000(0.837445)(0.162555)=1361.3[/math]

Copyright 2024 . The Society of Actuaries, Schaumburg, Illinois. Reproduced with permission.

Copyright 2024. The Society of Actuaries, Schaumburg, Illinois. Reproduced with permission.