Actuarial Notes

SOA Exam FAM Sample Question 2.9

Study guide: Exam FAM

You are given that mortality follows Makeham's Law with the following parameters:

i) A = 0.004

ii) B = 0.00003

iii) c = 1.1

Let L_{15} be the random variable representing the number of lives alive at the end of 15 years if there are 10,000 lives age 50 at time 0.

Calculate Var[L_{15}].

[Question on October 2022 FAM-L Exam]

  • A) 1,317
  • B) 1,328
  • C) 1,339
  • D) 1,350
  • E) 1,361

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