SOA Exam FAM Sample Question 5.1
Study guide: Exam FAM
You are given:
(i) \delta_{t} = 0.06, \quad t \ge 0
(ii) \mu_{x}(t) = 0.01, \quad t \ge 0
(iii) Y is the present value random variable for a continuous annuity of 1 per year, payable for the lifetime of (x) with 10 years certain
Calculate \Pr(Y > \text{E}[Y]).
[Question 21 on the Spring 2013 exam]
- A) 0.705
- B) 0.710
- C) 0.715
- D) 0.720
- E) 0.725
Answer this question and see the worked solution