Q4. (10 points) Suppose WeCare Insurance company would like you to refine its model to be sensitive to age. The model cu

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Q4 10 Points Suppose Wecare Insurance Company Would Like You To Refine Its Model To Be Sensitive To Age The Model Cu 1 (24.91 KiB) Viewed 11 times

Q4. (10 points) Suppose WeCare Insurance company would like you to refine its model to be sensitive to age. The model currently assumes a constant force of mortality, μ = 0.02. Based on your analysis, you assign a mortality rate for each age group as follows: Age group <20 [20, 40) >40 a) Under the original model, compute E[T20]. b) Under the new model, compute E[T20]. c) Under the new model, derive fo(x) for x > 0. d) Under the new model, compute 10935. e) Under the new model, compute Pr{K39 = 1}. fx 0.01 0.02 0.03