SOA Exam FAM Sample Question 3.11

Study guide: Exam FAM

For the country of Bienna, you are given:

(i) Bienna publishes mortality rates in biennial form, that is, mortality rates are of the form: $_{2}q_{2x}$ , for $x = 0, 1, 2, \ldots$

(ii) Deaths are assumed to be uniformly distributed between ages $2x$ and $2x + 2$ , for $x = 0, 1, 2, \ldots$

(iii) $_{2}q_{50} = 0.02$

(iv) $_{2}q_{52} = 0.04$

Calculate the probability that (50) dies during the next 2.5 years.

[Question 1 on the Fall 2016 exam]

Concepts tested