SOA Exam FAM Sample Question 4.1
Study guide: Exam FAM
For a special whole life insurance policy issued on (40), you are given:
(i) Death benefits are payable at the end of the year of death
(ii) The amount of benefit is 2 if death occurs within the first 20 years and is 1 thereafter
(iii) Z is the present value random variable for the payments under this insurance
(iv) i = 0.03
(v)
x |
A_{x} |
_{20}E_{x} |
|---|---|---|
| 40 | 0.36987 | 0.51276 |
| 60 | 0.62567 | 0.17878 |
(vi) E[Z^{2}] = 0.24954
Calculate the standard deviation of Z.
[Question 14 on the Fall 2012 exam]
- A) 0.27
- B) 0.32
- C) 0.37
- D) 0.42
- E) 0.47
Answer this question and see the worked solution