CAS Exam MAS-I Fall 2018, Question 13
Study guide: Exam MAS-I
You are given the following information:
- There are two independent lives (35) and (55)
- The mortality of (35) follows the Illustrative Life Table
- The mortality of (55) follows the Illustrative Life Table, except that the annualized mortality after age 80 stays constant at the age 80 rate, where
q_{80} = 0.0803
Calculate the probability that (35) is the only one of the two that lives to age 90.
- A) Less than 0.075
- B) At least 0.075, but less than 0.085
- C) At least 0.085, but less than 0.095
- D) At least 0.095, but less than 0.105
- E) At least 0.105
Answer this question and see the worked solution