Simple Questions

Hi all,

I've got two questions that hopefully you guys can help me with. I'd really appreciate any help!

The first is very simple; I've been going through the course notes and they regularly refer to "the Tables". I have looked through the course notes thoroughly and cannot find them. I purchased the CMP, is it not included in there or have I not looked through the notes carefully enough?

The second question is to do with Chapter 4 - Reinsurance. P23, Q4.15, has the question "What is the limit of E(Yn) as n tends towards infinity?"

I've had a look at the answers and I can follow until we derive:

k^n (lambda)/(alpha - 1) * [1 - (1 + 500/(k^n * lambda))^(1-alpha)]

But when they ask me to use a binomial expression and simplify I'm not sure what to do . I assume its relatively simple as they put no working...

 

ok easy one first

http://www.actuaries.org.uk/members/transactions/publications_shop

you can find the tables there

so first there is a bit of re-expressing
the notes just leave 1 line out

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next bit is explained very poorly and is not by any means what I would call easy.
First thing to note is alpha isn't a variable in this limit,it is 6 so alpha minus 1 =5
so the notes expansion is nonsense in my eyes cause they take it to the power of minus 1 , the answer is written from the point of view of "I already know the answer so here is a poor explanation".

So I expand the top and bottom of the fraction in the brackets and then only worry about the term independent of k^n since all the rest will go to 0 in the limit , hope this makes sense IF you ever read this , so reply back if ya get it or more importantly if you don't get it.


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Thanks heaps Hamilton. Makes sense now, well worth the wait =). Studying alone has been quite different from studying at Uni where you can discuss with your class mates, so its good that a forum like this is around!
Thanks again =)

 

not a problem Danjc

Its handy to be able to ask questions alright , to be honest I think this forum is pants , guess there isn't that many trainee actuaries on here willing to generate some much needed content . Well rant over. If you need any help and I mean any I will try .Need some motivation really bored studying at mo and I'm taking ct6 in April along with ct 1 3 and 5 , so many boring days ahead !