Answer Happy

Q3. (10 points) Suppose SuperAwesome Insurance hires you to create a new mortality model for them. Based on your analysis, you arrive at a candidate model to use with the following distribution: F(x) = 1 - μe-"x for x ≥ 0, where x represents the age of the person in years: a) Derive tPx for x > 0. b) Derive tuqx for x > 0. c) Derive Pr{K, k} in terms of k and x for k ≥ 0 and x ≥ 0. d) Derive the 3-standard deviation confidence interval (note: left-hand-side set to zero if result is negative): [max (E[T]-3√Var(T), 0), E[Tx] + 3√Var(T₂)] e) You're interested in finding an appropriate for the model to be realistic. Find μ such that 99.99% of the possible values of T, are less than or equal to 120.