Has any one tried that random variable approach for calculating the expected profit? That question has been asked in past exam, in that approach we consider each case if policyholder dies in year one, if policyholder surrenders one year one, if policyholder Surrenders in year two if policy holder dies in year two that is really an interesting method,
I am familiar with the concept very well, i was just making sure that if any one has issue on it, so you can ask me,