• We are pleased to announce that the winner of our Feedback Prize Draw for the Winter 2024-25 session and winning £150 of gift vouchers is Zhao Liang Tay. Congratulations to Zhao Liang. If you fancy winning £150 worth of gift vouchers (from a major UK store) for the Summer 2025 exam sitting for just a few minutes of your time throughout the session, please see our website at https://www.acted.co.uk/further-info.html?pat=feedback#feedback-prize for more information on how you can make sure your name is included in the draw at the end of the session.
  • Please be advised that the SP1, SP5 and SP7 X1 deadline is the 14th July and not the 17th June as first stated. Please accept out apologies for any confusion caused.

CT5 Chapter 7

A

Aisha

Member
Hello

I have a few doubts:

1) In question 7.16, why has ultimate mortality been used instead of select mortality?

2) ON page 37, while evaluating the expression for recursive relations for reserves, why haven't we included the probability of surviving to the age t while evaluating the expression ( tV' + G -e) i.e why dont we have ( tV' + G -e) tpx
 
They used ultimate mortality since reserve is being calculated at t = 2 and they are calculating the
prospective reserve so select mortality comes to end in two years, that is why they used ultimate
mortality.


in the second question we will use not used tpx since we are using recursive relationship and we go from t to t+1 that is
why survival probability of t+1 is take and not for who t.

since when you are using recursive relation so you take reserve at time t and then calculate reserve at t+1
now taking reserve at time t means he has already survived to time t and not he has to survive for one more
year to get to t+1. that is why tPx is not valid
 
You must log in or register to reply here.
Back
Top