Re: 1991 exam question

hayess2@nationwide.com
Thu, 15 Oct 1998 14:15:37 -0400

Statement #3 translates into:

1-v^20 1-v^10
------ = 1.4 *( -------) which solves to 0=v^20 - 1.4 v^10 +
0.4
del del

And using the binomial equation with x = v^10, you get to:

v^10 = 0.4 which solves to i = .095958 which solves to del = .09163.

Then 20P20 = e^(20*.09163) = .016 and 20P30 = e^(30*.09163) = .064

Now the prob. of dieing b/n 40 and 50 is 20P20 - 20P30 = .016 - .064 =
..096.

I hope the notation isn't confusing, paper is easier...