MECE-003 Actuarial Economics: Theory and Practice
Solved Assignment 2020-2021
Course Code: MECE-003
Assignment Code: MECE-003/AST/2020-21
Maximum Marks: 100
|Title Name||MECE-003 Solved Assignment 2020-21|
|Service Type||Solved Assignment (Soft copy/PDF)|
|Semester||2020-2021 Course: MA(ECONOMICS) MEC|
|Short Name||MECE-003 (ENGLISH)|
|Product||Assignment of MA(ECONOMICS) 2020-2021 (IGNOU)|
|Submission Date||For July 2020 session, you need to submit the assignments by March 31, 2021, and for
January 2021 session by September 30, 2021 for being eligible to appear in the term end examination.Assignments should be submitted to the Coordinator of your Study Centre. Obtain a receipt from the Study Centre towards submission.
1) (a) Why is it necessary to model interest stochastically? How is a model of ‘stochastic interest’
developed? (b) Differentiate between the features of ‘classical and Bayesian analysis of
2) You are required to demonstrate the interplay between ‘finance and insurance principles’. How
would you approach this problem with the help of ‘unit-linked insurance contracts’?
3) State Markov’s theorem with illustrations. What is the condition required to be met by a random
variable R in order to possess the Markov property?
4) How is a ‘survival function’ defined? In what way is a ‘hazard function’ different from the
5) How is Lundberg Risk Model formulated? Suggest modifications therein so as to offer an
alternative to it.
6) State the Optional Stopping Theorem. What technique could be used to analyse the ‘collective
7) Write short notes on: (a) Compound-Poisson Process; (b) Black-Scholes Theorem; (c) Panjer
Recursion; and (d) Risk neutral evaluation.
MECE-003, MECE003, MECE-03, MECE-3, MECE 003, MECE 3, MECE-03