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Commutation functions

T

Terence Ting

Member
Might be a not-so-smart question, but it is stated that we will only use Dx from the commutation functions.

I still remember how to use the old commutation functions from ages ago when I did the subject in uni, am I allowed to use Mx Cx so forth?
 
Suggest defining each commutation function you use - is good practice for the exam anyway...
 
We may not use

Probably we may not like to use other commutation functions than Dx. We may need a few others (like Mx, Cx etc.,) in Chapter 14 while working with pension funds where in we are advised to define them anyway.

Thanks,
Raj
 
Yes - we do use some commutation functions other than Dx in Chapter 14 on Pension Funds. Here, it is good practice to define each of the new commutation functions you introduce in a derivation-type question.

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Terence - I (just about) recall the methods I think you're referring to where annuity and assurance values can be calculated using Mx, Nx etc - as this used to be on the syllabus for the equivalent subject to CT5 in the past. However, these methods are no longer on the CT5 syllabus.

If you use these methods correctly, you should get the same numerical answers, but note that:
- Mx, Nx etc are only tabulated for AM92 mortality, so if you're given a different mortality table (eg PMA/PFA 92C20) you'll need to use the up-to-date approach from the current syllabus. So you must learn this anyway.
- The solutions to the questions in the course all follow the methods shown in the current course (ie not Mx, Nx etc), as will the marking schedule for the exam. So you'll be seeing it a lot.

So - my advice is get to grips with the method in the current course.
 
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