SOA Exam FAM Sample Question 3.8
Study guide: Exam FAM
A club is established with 2000 members, 1000 of exact age 35 and 1000 of exact age 45.
You are given:
(i) Mortality follows the Standard Ultimate Life Table
(ii) Future lifetimes are independent
(iii) N is the random variable for the number of members still alive 40 years after the club is established
Using the normal approximation, without the continuity correction, calculate the smallest n such that \Pr(N \ge n) \le 0.05.
[A modified version of Question 1 on the Spring 2015 exam]
- A) 1500
- B) 1505
- C) 1510
- D) 1515
- E) 1520
Answer this question and see the worked solution