MECE-103 ACTUARIAL ECONOMICS: THEORY AND PRACTICE in English Solved Assignment 2022-2023

MECE-103 ACTUARIAL ECONOMICS: THEORY AND PRACTICE in English Solved Assignment 2022-2023

Tutor Marked Assignment (TMA)
Course Code: MECE-103
Assignment Code: MECE-103/AST/2022-23
Maximum Marks: 100

Note: Answer all the questions.
SECTION A
Answer the following questions in about 700 words each. The word limits do not apply in case of
numerical questions. Each question carries 20 marks.
1) Apply Chebychev’s inequality to: (i) arrive at ‘Chebychev’s bounds’ for the sum of ‘n’
Bernoulli variables; and (ii) state the Law of Large Numbers (LLN) in general.
2) Specify the features of ‘parametric survival models’. Describe the extended versions of
‘parametric survival models’.
SECTION B
Answer the following questions in about 400 words each. Each question carries 12 marks.
3) Outline the properties of an ‘accumulation function’ with illustrations.
4) Describe the concepts of ‘hazard function’ and ‘cumulative hazard function’.
5) Show that the probability of a life alive at age ‘x’ dying before the age ‘x + 1’ is the
‘weighted average of the force of mortality’.
6) Discuss the concept of ‘benefit reserves’ with equations for different type of insurance policies.
7) Discuss the distribution of ‘excess beyond a threshold’.

MECE-103, MECE 103, MECE103