Stat 470, Spring 2006

Homework Set 7, 8 Problems Due Monday 5/8/06
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(1) If a life table has  l_{50} = 7.e4  and
l_{65} = 5.5e4 , then give a confidence interval
(two-sided, 95%) for the probability 15p50 
that a 50-year-old will survive 15 more years.
Use this confidence interval to find a 
confidence interval for the net single (risk) 
premium an insurance company should charge a customer 
who just turned 50 for a 15-year endowment with face
value $50,000, using effective interest rate i = .05.
IN THIS PROBLEM, TREAT  l_{50}  AS KNOWN.
 
Problems from the end of Chapter 4 of the 
text/notes:  # 10, 15 pp.116-117.

Problems from the end of Chapter 5 of the 
text/notes:  # 4, 5, 8, 11, 14 p.139-140.