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Mathematics, 11.02.2020 22:55 yhhh

Insurance Given µx = µ for all x and a force of interest of δ;
a. Derive an expression for Āx and Var[Z] in terms of µ, δ.
b. Assume that δ = 0.02 and µ = 0.01.
Find the probability that the net single premium, Āx, is insufficient to cover the benefits.

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