ABy Admin
Jan 15'24

Exercise

You are given the following survival function of a newborn:

[[math]] S_{0}(x)= \begin{cases}1-\frac{x}{250}, & 0 \leq x\lt40 \\ 1-\left(\frac{x}{100}\right)^{2}, & 40 \leq x \leq 100\end{cases} [[/math]]


Calculate the probability that (30) dies within the next 20 years.

  • 0.13
  • 0.15
  • 0.17
  • 0.19
  • 0.21

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

ABy Admin
Jan 15'24

Answer: B

[[math]] \begin{aligned} & { }_{20} q_{30}=\frac{S_{0}(30)-S_{0}(50)}{S_{0}(30)}=\frac{\left(1-\frac{30}{250}\right)-\left(1-\left[\frac{50}{100}\right]^{2}\right)}{1-\frac{30}{250}}=\frac{\frac{220}{250}-\frac{3}{4}}{\frac{220}{250}} \\ & =\frac{440-375}{440}=\frac{65}{440}=\frac{13}{88}=0.1477 \end{aligned} [[/math]]

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

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

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

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

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