Please solve as soon as possible 3. An insurance policy provides a benefit of $1 payable immediately on the death of thelast survivor of a male life aged 55 exact and a female life aged 50 exact. Assume thatthe mortality of the male life and the female life follow the constant force of mortalityrule with the rates of 0.03 and 0.02, respectively. Also assume the force of interestequal to 4%. Compute the expected present value of the policy as well as the varianceof the random present value.

Answered: Image /qna-images/answer/71efc096-ed47-49f1-8e7c-80fd2e230f46.jpg

Answered: 3. An insurance policy provides a…

Calculus For The Life Sciences

2nd Edition

ISBN:9780321964038

Author:GREENWELL, Raymond N., RITCHEY, Nathan P., Lial, Margaret L.

Publisher:GREENWELL, Raymond N., RITCHEY, Nathan P., Lial, Margaret L.

Chapter13: Probability And Calculus

Section13.3: Special Probability Density Functions

Problem 36E

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The accompanying data represent the annual rates of return of two companies' stock for the past 12 years. Complete parts (a) through (k). O A. OB. 0.50- 0.50- 0.00- 0.00- -0.50- -0.50- -0.3 RR of Company 2 0.0 0.3 -0.3 0.0 0.3 RR of Company 1 OC. 0.30- 0.50- 0.00- 0.00- -0.30- -0.50- o.0 0'5 0.0 0.3 -0.5 RR of Company 2 0.5 -0.3 RR of Company 1 (b) Determine the correlation coefficient between rate of return of Company 1 and Company 2. The correlation coefficient is 0.966. (Round to three decimal places as needed.) (c) Based on the scatter diagram and correlation coefficient, is there a linear relation between rate of return of Company 1 and Company 2? Yes No (d) Find the least-squares regression line treating the rate of return of Company 1 as the explanatory variable. y=x+O (Round to four decimal places as needed.) RR of Company 1 RR of Company 1 RR of Company 2 RR of Company 2
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The following table shows the daily receipts in millions of dollars of the movie "Avatar" for successive Fridays after its opening on Friday 18 December 2009. Weeks SReceipts 3 50.306 31.28 6. 6. 16.24 12 6.526 15 0.98 18 0.92 21 0.335 0.076 27 0.044 Estimate the instantaneous rate of change of daily receipts 9 weeks after the opening day. Nnlo 147
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The Capital Asset Pricing Model (CAPM) is a financial model that assumes returns on a portfolio are normally distributed. Suppose a portfolio has an average annual return of 14.7% (i.e. an average gain of 14.7%) with a standard deviation of 33%. A return of 0% means the value of the portfolio doesn’t change, a negative return means that the portfolio loses money, and a positive return means that the portfolio gains money. What percent of years does this portfolio lose money, i.e. have a return less than 0%? What is the cutoff for the highest 15% of annual returns with this portfolio?
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Assume that you have collected cross-sectional data for average hourly earnings (ahe), the number of years of education (educ) and gender of the individuals (you have coded individuals as "1" if they are female and "0" if they are male; the name of the resulting variable is DFemme). Having faced recent tuition hikes at your university, you are interested in the return to education, that is, how much more will you earn extra for an additional year of being at your institution. To investigate this question, you run the following regression: ahe= -4.58 + 1.71×educ N = 14,925, R2 = 0.18, SER = 9.30 a. Interpret the regression output. b. Being a female, you wonder how these results are affected if you entered a binary variable (DFemme), which takes on the value of "1" if the individual is a female, and is "0" for males. The result is as follows ahe= = -3.44 - 4.09×DFemme + 1.76×educ N = 14,925, R2 = 0.22, SER = 9.08 Does it make sense that the standard error of the regression decreased…
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