Force of mortality
Fernando Alvarado Angulo ( falvarad@cu.gdl.uag.mx )
Wed, 8 Sep 1999 10:24:45 -0500 (CDT)
I found this one on the Fall 98 exam, and must admit I'm practically
clueless. The problem says, more or less: find the actuarial present value
of a whole life insurance of (x), if mu is constant, and the effective
annual interest rate is unknown, but is known to be constant AND
UNIFORMILY DISTRIBUTED IN THE INTERVAL (0,0.1).
That last part is the one I don't understand, and don't even know where to
look up. Would anyone know what would that mean?, how would that be
translated to find the proper discount factor?
Thanks!