Exam M Fall 2005
FINAL ANSWER KEY
Question # Answer Question # Answer
1 C 21 E
2 C 22 B
3 C 23 E
4 D 24 E
5 C 25 C
6 B 26 E
7 A 27 E
8 D 28 D
9 B 29 A
10 A 30 D
11 A 31 A
12 A 32 A
13 D 33 B
14 C 34 C
15 A 35 A
16 D 36 A
17 D 37 C
18 D 38 C
19 B 39 E
20 B 40 B
Exam M: Fall 2005 -1- GO ON TO NEXT PAGE
**BEGINNING OF EXAMINATION**
1. For a special whole life insurance on (x), you are given:
(i) Z is the present value random variable for this insurance.
(ii) Death benefits are paid at the moment of death.
(iii) ( ) 0.02, 0 xt t µ = ≥
(iv) 0.08 δ=
(v) 0.03, 0 t
tb e t = ≥
Calculate ( ) Var Z .
(A) 0.075
(B) 0.080
(C) 0.085
(D) 0.090
(E) 0.095
Exam M: Fall 2005 -2- GO ON TO NEXT PAGE
2. For a whole life insurance of 1 on (x), you are given:
(i) Benefits are payable at the moment of death.
(ii) Level premiums are payable at the beginning of each year.
(iii) Deaths are uniformly distributed over each year of age.
(iv) 0.10 i =
(v) 8 x a =