Question: Consider 100,000 (often referred to as a radix in actuarial science) new born male babies. The data in a course blackboard file show the number of male survivors at each exact age to age 100. For simplicity assume that there are no survivors at age 101. Consider a 30-year-old, calculate his life expectancy (mean years of survival). Also, calculate the median, mode, standard deviation, skewness, and kurtosis. Find and graph the probability density (mass) function for additional years of life. (Attach the graph to your answer to this question.) Is it approximately normal? Assume that the 30 year old inherits an annuity that pays $10,000 per year on his 31St birthday and every successive birthday for life; the annuity terminates at death. What is the present value of his inheritance assuming that the appropriate discount rate is 6%? What is the present value of the inheritance calculated to this person's life expectancy?

Price: $2.99

Solution: The downloadable solution consists of 7 pages
Deliverable: Word Document