Errata and Updates for ASM Exam MLC (Fourteenth Edition) Sorted by Page

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1 Erraa for ASM Exam MLC Sudy Manual (Foureenh Ediion) Sored by Page 1 Erraa and Updaes for ASM Exam MLC (Foureenh Ediion) Sored by Page Pracice Exam 7:25 (page 1386) is defecive, Pracice Exam 5:21 (page 1364), 8:25 (page 1397), 14:22 (page 1455), and 15:22 (page 1464) should be correced as lised below [11/24/2014] On page 15, in he soluion o exercise 111, on he las line, pu a righ parenhesis afer Pr(X < 1/2 [2/7/2015] On page 22, 8 lines above equaion (24), change sam o same [9/10/2014] On page 32, exercise 221 belongs in Lesson 5 [8/19/2014] On page 32, in he soluion o exercise 21, on he hird line, he denominaor should be S 0 (32) [9/19/2014] On page 36, in he soluion o exercise 221, on he sixh line, change 2011 o 2016 [10/29/2014] On page 49, in exercise 342, on he las line, change form o from [9/18/2014] On page 52, in he soluion o exercise 313III, dx should be moved o he lef of he firs equals sign, righ afer (x + 1) n [11/24/2014] On page 98, in he soluion o exercise 517, on he second displayed line, cube he firs 50 in he numeraor and denominaor so ha i reads (20 + ) /( ) 3 [1/6/2015] On page 98, in he soluion o exercise 519, on he second displayed line, change 20 p 1 0 o 20 p 10 [11/24/2014] On page 103, in he soluion o exercise 534, on he second line, change probabiliy of deah a o probabiliy of deah afer [7/17/2014] On page 155, in exercise 831, in he able, change e x o e [x ] [7/17/2014] On page 156, in exercise 832, on he las line, change he firs numeraor A(09 5 1) o A( ) [12/14/2014] On page 165, in he soluion o exercise 831, he pars should be numbered (a), (b), (c) raher han 1, 2, 3 On he second line of he soluion o par (c), change o 1 ( ) [7/17/2014] On page 166, in he soluion o exercise 832, on he las wo lines (once apiece), change o [7/10/2014] On page 186, in he answer o Example 10H, on he second displayed line, change 001 o 0005 On he hird displayed line, change 003 o 002 and o On he las line, change 001 o 0005, o 00099, and o [10/21/2014] On page 208, in he soluion o exercise 1027, on he las line, change A (4) o A (4) x [12/14/2014] On page 214, in he soluion o exercise 1051, on he second line, pu a negaive sign before B c 50 [2/12/2015] On page 232, on he las line, delee F05:35 [7/17/2014] On page 247, wo lines above Example 12E, change expeced value o presen value [12/14/2014] On page 256, in exercise 1229(c), change 0f o of [10/12/2014] On page 272, on he las line of he page, change π p o π p

2 2 Erraa for ASM Exam MLC Sudy Manual (Foureenh Ediion) Sored by Page [10/24/2014] On page 287, in he soluion o exercise 1323, on he hird displayed line of he page, change o [10/29/2014] On page 306, in exercise 1431(i), change he srange symbol near he end of he line o an ellipsis: 0,1,,9 [3/4/2015] On page 307, one line above Soluions, S14:5 is an old SOA Exam MLC quesion [12/14/2014] On page 311, in he soluion o exercise 1415, he pars should be numbered (a) and (b) insead of 1 and 2 In par (a), on he las line, change 10 q 60 o 10 q 50 [3/3/2015] On page 317, in he soluion o exercise 1434, on he second line, pu a negaive sign before ( ) a he righ: exp ( ) [9/30/2014] On page 326, in he soluion o exercise 158, on he second displayed line, change o = [8/7/2015] On page 338, on he firs line of Secion 172, replace life annuiy-due wih whole life annuiy-immediae [7/22/2014] On page 363, replace he las wo lines of he soluion o exercise 1738 wih 1/ /106 12a 85:2 = / / (085/106) 1/ (08/106) 1/12 = ( )( ) ( )( ) = [11/2/2014] On page 364, in he soluion o exercise 1740, on he second displayed line, pu a negaive sign before Āx [11/3/2014] On page 385, in he soluion o exercise 1822, on he las line, inser 20,000 before δ [12/15/2014] On page 399, in exercise 1927, on he second line, change v T x o v T x [10/24/2014] On page 411, in he soluion o exercise 1925, on he firs line, change 6-year o 5-year [11/6/2014] On page 433, in he soluion o exercise 2019, on he fifh displayed line, change ā Tx o Var(ā Tx ) [10/21/2014] On page 442, in exercise 214, on he fourh, sevenh, and ninh lines, add expeced before presen value [10/21/2014] On page 446, in he soluion o exercise 214, on he second line afer he imelines, change is increases o is decreases and change second annuiy s decreases o second annuiy s increases [9/4/2014] On page 457, in Table 221, on he hird line of he secion of formulas labeled Woolhouse formula wih wo erms, change ä x o ä x :n [10/7/2014] On page 501, in Example 25D(iii), change ne o gross [2/25/2015] On page 502, on he hird displayed line of he answer o Example 25E, change ā 60:10 o ä 60:10 [1/24/2015] On page 519, in he soluion o exercise 2527 on he hird line, change o On he las line, change 18,930 o 18,9965 and change o [12/18/2014] On page 543, in he soluion o exercise 2713, on he second o las line, change o [11/10/2014] On page 544, in he soluion o exercise 2715, on he hird displayed line, change π o P [8/16/2015] On page 561, in he soluion o exercise 2819, change a 41 o a 40 in wo places: on he second line and on he sevenh line

3 Erraa for ASM Exam MLC Sudy Manual (Foureenh Ediion) Sored by Page 3 [11/10/2014] On page 562, in he soluion o exercise 2821, on he hird line, replace calculae wih calculaes [8/1/2014] On page 563, on he line below equaion (256), delee +c afer a 2 Var(X ) [12/18/2014] On page 574, in exercise 2923, he firs column of he able is missing The able should be: Percen of premium Per policy Firs year 65% 150 Renewal 5% 15 [11/10/2014] On page 574, in he soluion o exercise 293, on he firs displayed line, some 150,000 2 s are missing The line should read 2 Var(L) = 150,000 2 A x A 2 x = 150, = 150,000 2 ( ) (1 A x ) 2 ( ) 2 [8/15/2014] On page 580, in he soluion o exercise 2923, change he hird line from he end o = , (095) 15 2 = 8,348, /106 Change he las line o 0 ( ) 1 Φ = 1 Φ(147) = ,844,100 [10/19/2014] On page 583, in formula (302), change he denominaor from 1 Ā 2 x o (1 Ā x ) 2 [2/12/2015] On page 592, one line above Soluions, add F05:35 o he Addiional old CAS Exam 3/3L quesions lis [12/18/2014] On page 597, in he soluion o exercise 3020, on he second displayed line, pu a bar over he A in A 2 x and pu an exponen 2 over 1 + π δ [11/11/2014] On page 617, in he soluion o exercise 317, on he second o las line, replace 3111 wih 603 [11/12/2014] On page 618, he soluion o exercise 3111 is incorrec The correc soluion is The loss for deah in year k is Seing his equal o 0, 0L = 10,000v k + 10(050) + 4 ä k + 10(4) (320)ä k + 045(320) 1 v = 10,000v k k /104 = 17,670v k 7,460 v k = ,670 = ln k = = ln 104

4 4 Erraa for ASM Exam MLC Sudy Manual (Foureenh Ediion) Sored by Page The loss will be posiive if deah occurs in year 21 or earlier The probabiliy of ha is 21 q 30 = 21/80 = [10/12/2014] On page 641, one line before Example 34D, delee s afer n + 1 s [5/3/2015] On page 646, in exercise 347(iii), delee he srange symbol before 13 [8/20/2014] On page 651, in exercise 3425(b), on he second line, change k V o k+ V [12/18/2014] On page 652, on he second o las line of he soluion o exercise 345, delee 1000 before 10 V [8/24/2014] On page 689, in he soluion o exercise 3614 par 1, he formulas for premium difference should be negaive of wha is shown In oher words, hey should be: (P x +5:15 P x :20 )ä x +5:15 ( 15 P x P x )ä x +5:15 [12/18/2014] On page 702, in exercise 3721, on he displayed line, replace l K wih 1 K [12/21/2014] On page 709, in he soluion o exercise 3713, on he las displayed line, change o [11/14/2014] On page 711, in he soluion o exercise 3721, 2 lines from he boom of he page, change 00021ä 40 o 00021v ä 40 [9/16/2014] On page 719, in he answer o Example 38C, on he second displayed line, change E o e [10/12/2014] On page 733, 2 lines from he end of he page, he line should end wih a period raher han a semicolon [5/3/2015] On page 754, in exercise 3947(ii), delee one of he reserves [5/3/2015] On page 757, in exercise 3960, on he firs line, change 1ife o life [12/21/2014] On page 764, in he soluion o exercise 3910, on he firs displayed line, delee 1000 before P 68 ä 85:3 [12/21/2014] On page 770, in he soluion o exercise 3935(c), change T x +1 = 1 o T x +1 1 [2/1/2015] On page 775, in he soluion o exercise 3959, on he firs displayed line, change he firs minus sign o an equals sign [11/13/2014] On page 776, in he soluion o exercise 3963, on he firs line, change 0 V 3 o 0 V g [5/3/2015] On page 796, on he hird line of he page, change he policy is a o he policy if a [10/12/2014] On page 799, in Table 412, on he line above formula (419), change face amoun b o face amoun W x [12/21/2014] On page 808, in exercise 4137, on he las line, change 1000b 20 o b 20 [11/17/2014] On page 812, in he soluion o exercise 4113, on he las line, change o [12/21/2014] On page 813, in he soluion o exercise 4117(b), on he sixh line, change h p x + o h p x +h [11/17/2014] On page 815, in he soluion o exercise 4123, on he fifh line, change A 65 o Ā 65 [12/21/2014] On page 817, in he soluion o exercise 4132, on he firs displayed line, delee 50,000 [10/28/2015] On page 819, in he soluion o exercise 4134, change he final answer from o in wo places [10/12/2015] On page 861, in exercise 4416, on he second-o-las line, change 2 p 12 1 o 2 p

5 Erraa for ASM Exam MLC Sudy Manual (Foureenh Ediion) Sored by Page 5 [8/30/2015] On page 864, on he second-o-las line of he soluion o exercise 447, change (448) o (449) [12/21/2014] On page 941, in he soluion o exercise 4727, on he firs displayed line, remove he parenheses around he subscrip (T, J ) [12/21/2014] On page 959, in he soluion o exercise 4818, on he welfh line, replace q (2) 64 wih 2 q (1) 64 [10/12/2014] On page 963, wo lines below formula (491), change he period afer ages o a comma [3/29/2015] On page 972, in exercise 4917, on he las line, a negaive sign is missing on he righ hand side of he equaion, which should be q (1) 30 q (2) (1) 30 ln q 30 [12/21/2014] On page 972, in he soluion o exercise 491, 2 lines from he end, replace 25 p (d ) x wih 25 p (d ) 65 [11/23/2014] On page 974, in he soluion o exercise 495, on he las line, change p (1) 41 o q (1) 41 [3/29/2015] On page 978, in he soluion o exercise 4917, 4 lines from he end, pu negaive signs in fron of ln p (1) 30 and ln(1 q (1) 30 ) 3 lines from he end, pu negaive signs in fron of each of he wo fracions On he q (1) 30 las line, pu a negaive sign in fron of q (2) 30 ln(1 q (1) 30 ) [12/23/2014] On page 1087, in exercise 5616(ii), he end of he line afer he comma should read i = 005 [11/24/2014] On page 1089, in he soluion o exercise 561, on he las line, change in he exponen of he numeraor o 5 1 [10/22/2015] On page 1093, in he soluion o exercise 5616, on he displayed line, change he lef side o 10 q 50:40 [12/23/2014] On page 1103, in he soluion o exercise 571, change p 00 50:55 o 20 p 00 50:55 [10/12/2014] On page 1104, in he soluion o exercise 577, on he second line, an inegral sign is missing The line should read = e d e 007 d 0 0 [5/3/2015] On page 1126, in exercise 5845(2), change 8ill o Bill [5/3/2015] On page 1126, in exercise 5846, on he second line, change m9men o momen [5/3/2015] On page 1129, in exercise 5853, on he hird-o-las line, delee he firs ha [12/23/2014] On page 1136, in he soluion o exercise 5827, on he second o las line, change firs deah o las deah [9/9/2014] On page 1137, in he soluion o exercise 5828, on he second o las line, he superscrips on he reserves on he righ hand side are reversed Also, alhough S is used in he exbook for face amoun, he ASM manual uses he leer b Therefore, ha line should be replaced wih d d V (0) = δ V (0) B µ x + :y + (b + V (1) V (0) ) µ x + :y + (b + V (2) V (0) ) [12/23/2014] On page 1137, in he soluion o exercise 5829 par 1, on he firs line, inser v before p x y : ā x y = 0 v p x y d [12/23/2014] On page 1155, in exercise 5917, in answer choice (D), change he las summand o 15 n ā y

6 6 Erraa for ASM Exam MLC Sudy Manual (Foureenh Ediion) Sored by Page [11/26/2014] On page 1166, in he soluion o exercise 5928, on he second line, change 006 o 06 and 013 o 13 On he las line, change 006 o 06 [4/12/2015] On page 1178, on he las line of he answer o Example 61A par 1, change o [4/12/2015] On page 1182, he final answer o Example 61E par 1 should be 143,0023 insead of 153,8301 The answer o par 2 should be 191,1148 insead of 205,8724 [10/15/2015] On page 1183, on he eighh line of he answer o Example 61G, change o age 65 o from age 65 o age 60 [3/16/2015] On page 1193, in he soluion o exercise 613, on he las line, replace d d x wih dx [12/23/2014] On page 1193, in he soluion o exercise 615, on he las displayed line, change r 361 r in he numeraor o r r 361 [3/9/2015] On page 1195, in he soluion o exercise 6113,change l (τ) 44 l (τ) (τ) 42 o l 42 l (τ) 44 [4/14/2015] On page 1196, in he soluion o exercise 6118, on he las line, change 9,146,051 o 9,164,051 and change he final answer o 50,63921 [5/3/2015] On page 1203, in exercise 624, on he firs line, change an effecive o as effecive [10/21/2014] On page 1206, in exercise 6218(iv), change he srange symbol afer he second equals o 002 [11/26/2014] On page 1207, in he soluion o exercise 623, on he las line, pu 1 before he second equals sign [11/26/2014] On page 1210, in he soluion o exercise 6215, on he sevenh line, change 825 o 2500 [10/12/2014] On page 1214, on he hird displayed line of he page, change E[n Var(L p I )] o E[n Var(L 1 I )] On he fourh displayed line, chagne Var(L p I ) o Var(L 1 I ) In formula (631), change Var(L p I ) o Var(L 1 I ) [10/12/2014] On page 1216, in formula (631), change Var(L p I ) o Var(L 1 I ) [10/12/2014] On page 1240, in formula (651), q (w ) should be q (w ) x +k 1 [10/12/2014] On page 1241, one line above he firs able, change 4028(089) o 40028(089) In he firs able, in he heading row, change Year o Year k and Pr o Pr k In he second able, change he heading l o l k [10/3/2014] On page 1241, in boh he firs and second ables, in he second o las column, change k p (τ) [50] o k 1p (τ) [50] [5/3/2015] On page 12419, one line above Secion 652, change oo o o [8/9/2014] On page 1243, one line below he heading DPP, change discoun o discoun [8/9/2014] On page 1245, change he las 6 lines of Secion 653, saring wih In year 2 o he following: In year 2, ignoring 1 V and seing 2 V = 65679, he profi is ( )(106) ( ) = 9773 Year 2 profi is posiive, so we se 1 V = 0, and as a resul, Pr 2 = 9773 In year 1, profi is ( )(106) 1000 = In year 0, profi is 950 These zeroized reserve increase he NPV significanly The profi signaure is wih NPV a 10% of ( 950, , 9773(089), 0, 0, 0) [10/3/2014] On page 12475, in Table 651, in he definiion of profi signaure, replace p x +k 1 wih k 1 p x

7 Erraa for ASM Exam MLC Sudy Manual (Foureenh Ediion) Sored by Page 7 [10/12/2014] On page 1247, in Table 651, in formula (651), q (w ) should be q (w ) x +k 1 [10/3/2014] On page 1250, in exercise 658(vi), change 1000 o 100 [12/23/2014] On page 1259, in he soluion o exercise 6517, on he las line of he page, replace 25 in he denominaor wih 26; i is 1/d [8/26/2014] On page 1266, on he second and hird displayed lines of he page, change o [12/23/2014] On page 1271, in he soluion o exercise 663, on he second line, replace (071124)(042522) wih (049247)(042522) On he hird line, change o [10/12/2014] On page 1281, in Table 671, in formula (6711), change γ o γ [10/12/2014] On page 1307, in formula (651), q (w ) should be q (w ) x +k 1 [11/8/2014] On page 1313, in exercise 687(iv)(a), change d e a h q ( ) 39 o d e a h q ( ) 40 [12/23/2014] On page 1317, in he soluion o exercise 687, replace he las line wih The gain, he excess of acual over expeced profis is = [7/20/2014] On page 1364, in quesion 21, he las line should be n k 2 n(n + 1)(2n + 1) = 6 k=1 [8/23/2015] On page 1386, quesion 25 is defecive since i is missing he expeced presen value of he reiremen annuiy Answers o (b) and (c) should be muliplied by ha expeced presen value [7/20/2014] On page 1397, in quesion 25(a), on he second line, change l (τ) 60 o l (τ) 62 [7/23/2014] On page 1404, in quesion 26(b), i is inappropriae o use he normal approximaion here, because he asympoic disribuion is only normal if condiioned on q 45 ; oherwise, i is a bimodal disribuion However, you can sill calculae he variance of he presen value of he paymens [7/28/2014] On page 1455, in quesion 22, change (vi) o The muliple-decremen deah rae a ages 60 hrough 64 is k q (d ) 60 = 001, k = 0, 1, 2, 3, 4, before wihdrawal The deah rae is k q (d ) 60 = 001, k = 0, 1, 2, 3, 4, afer wihdrawal [7/29/2014] On page 1464, in quesion 22(c), add Deahs are uniformly disribued beween inegral ages before Using Woolhouse s formula [3/3/2015] On page 1483, in he soluion o quesion 14, on he hird line, change s + 1 o x + 1 and change he las is o o [4/23/2015] On page 1484, in he soluion o quesion 17, change he las senence o III is false since p 03 is no necessarily 0 wheher or no he lives are independen (E) [5/3/2015] On page 1524, he correc answer choice for quesion 20 is (B) Correc he able on page 1516 as well [9/30/2014] On page 1524, in he soluion o quesion 21, on he firs line, he formula should be 05( 05 p p 703 ) The 05 facor is missing On he firs displayed line of he soluion o par (a), 07 p 708 should be 07 p 703 [7/21/2014] On page 1525, in he soluion o quesion 22(a), on he las line of he page, change p x +k o k p x +k [7/21/2014] On page 1525, in he soluion o quesion 23(a), on he firs line, delee 100 from he numeraor of he fracion a he sar of he line

8 8 Erraa for ASM Exam MLC Sudy Manual (Foureenh Ediion) Sored by Page [7/21/2014] On page 1526, in he soluion o quesion 25(a), on he las line, change he denominaor 096( ) o 096(17625) 076 [10/1/2014] On page 1528, in he soluion o quesion 29(a), on he second line, place an exponen 2 on 960: n 2 [10/7/2014] On page 1538, in he soluion o quesion 26(a), on he hird line, replace wih [10/12/2014] On page 1545, in he soluion o quesion 15, on he fifh line, change if o is [7/23/2014] On page 1548, in he soluion o quesion 23(b), on he las displayed line, change 100,000 o 100,100 In he soluion o quesion 23(c), on he displayed line, change 100,000 o 100,100 and change he final answer o [7/20/2014] On page 1549, in he soluion o quesion 25(b), on he hird displayed line, he expression afer he firs equals sign is missing he denominaor, and should be (017+ln 104) 1 e ln 104 [7/20/2014] On page 1551, in he soluion o quesion 27(b), 3 lines before he end, change o [10/25/2014] On page 1555, in he soluion o quesion 10, on he fourh line, inver he fracion so ha i is [7/23/2014] On page 1562, in he soluion o quesion 24(c), on he firs displayed line, change he inegrand o p 01 0 µ13 d On he second displayed line, change 5 u p 11 u o u p 11 u On he fourh displayed line, change he upper bound of he inegral from 5 o On he second o las line, change µ 12 o µ 13 [7/22/2014] On page 1563, he soluion o quesion 26 is incorrec The correc soluion is (a) Pension will be 60% of 3-year average final salary Tha average will be ,000 = 228, So he annual pension will be 06(228,8594) = 137,3156 (b) The life annuiy-due has EPV a age 65 of 137,3156ä 65 = 137,3156(98969) = 1,358,999 Discouning o age 35, 1,358, E 35 = 1,358,999(054318)(025634) = 189,225 (c) (i) The benefi based on 10 years of service is 20% of 3-year average salary, 02(145,000) = 29,000 I is paid a age 65 The expeced presen value of a 20-year deferred whole life annuiy-due of 1 is 20 ä 45 = E p ä 65 = (025634)(98969) = So he accrued liabiliy is 25370(29,000) = 73,57217 (ii) Projeced 3-year average salary is ,000 = 255, The accrued liabiliy, using he annuiy value for 20 ä 45 from par (i), is 25370(02)(255,43934) = 129,60992

9 Erraa for ASM Exam MLC Sudy Manual (Foureenh Ediion) Sored by Page 9 (iii) We calculaed projeced 3-year average salary as 255,43934 in par (ii) Muliplying by 20 ä 45 and by 04, he projeced liabiliy is 25370(04)(255,43934) = 259,21691 [7/23/2014] On page 1564, in he soluion o quesion 27(c), replace he second displayed line wih 003( x ) = x [7/22/2014] On page 1572, in he soluion o quesion 21(b), on he fourh displayed line, replace 2 E wih 2 20 E 45 [7/25/2014] On page 1573, in he soluion o quesion 22(c), 1 On he firs displayed line, change ä [41] o ä [41]+1 and change P [41] o P [41]+1 2 On he hird displayed line, pu a double-do on a [41]+1 and change p [41] o p [41]+1 [7/25/2014] On page 1584, he soluion quesion 21(c) and 21(d) is incorrec and should be replaced wih he following: 3 The probabiliy of survival, for 19, is (20 )/20 05 Le N be he number of lives in he nursing home a he end of 2 years For a life enering a ime 2, he expeced number of lives a ime 2 is a Bernoulli random variable wih mean p 80 Adding up hese means over he wo lives: E[N ] = p p 80 = + = The variance of he Bernoulli variable is p 80 q 80 Adding up hese variances Var(N ) = = [7/27/2014] On page 1596, in he soluion o quesion 22, on he firs displayed line, delee 100 and delee he parenheses [7/27/2014] On page 1599, in he soluion o quesion 26(b), on he displayed line, change he numeraor 015 o 150 [7/27/2014] On page 1600, in he soluion o quesion 26(c), on he las line, change he numeraor o [7/27/2014] On page 1607, in he soluion o quesion 21(e), delee he 1000 afer he second equals sign [8/25/2015] On page 1610, in he soluion o quesion 25(a), on he firs displayed line change µ o µ12 65 On he hird displayed line change µ o µ In he soluion o quesion 25(b), on he firs displayed line change he wo subscrips o 65 On he hird displayed line change he wo subscrips o 649 In he soluion o quesion 25(c), on he firs displayed line, add d a he end On he fourh displayed line, change p o 10 p On he second o las line, pu a minus sign in fron of 0015 Change he las line o = 4 3 e e 00075(152) e 00075(52 ) = [7/28/2014] On page 1619, in he soluion o quesion 22(b), change he senence saring 3 lines from he end wih We discoun o

10 10 Erraa for ASM Exam MLC Sudy Manual (Foureenh Ediion) Sored by Page We discoun each for 5 years, and muliply by he probabiliy of no dying for 5 years, which is 1 001, where is he amoun of ime o age 65 Change he displayed line o (004)(004)(10)(1,550,000(0955) + 1,651,500(0965) + 1,756,045(0975) + 1,863,726(0985) + 1,974,638(0995)) = 107,6395 [7/28/2014] On page 1631, in he soluion o quesion 21(c), on he firs line, change q 40 = 025 o q 40 = 075 and change p 40 = 075 o p 40 = 025 [7/29/2014] On page 1632, in he soluion o quesion 24(b), change i i δ A 53 o 1000 A 53 δ [7/29/2014] On page 1633, in he soluion o quesion 26(a), on he fourh displayed line, change o On he second-o-las line, change ä 40:30 (4) o ä (4) 40:30 [4/15/2015] On page 1636, in he soluion o quesion 26, on he las line, change age 25 o age 20 [2/26/2015] On page 1673, in he soluion o quesion 12, on he second line, change ä x :2 o a x :2 [9/11/2014] On page 1689, in he soluion o quesion 6, on he second o las line, change 2 q (w ) x +1 o 2 q (w ) x [3/21/2015] On page 1705, in he soluion o quesion 8, on he second line, change v (k ) o v ( ) k [9/18/2014] On page 1706, in he soluion o quesion 11, on he las line, change b /2a o b /2a [4/20/2015] On page 1707, in he soluion o quesion 15, 4 lines from he end, he expression be squared: b + G e 2 d b + G e d [4/29/2015] On page 1709, in he soluion o quesion 21, on he firs displayed line, change 10 ä x o 10 ā x [8/8/2014] On page 1728, in he soluion o quesion 11, change he las displayed line o 1 + p 30: i = = should [12/3/2014] On page 1731, in he soluion o quesion 2(a), on he second displayed line, change µ 00 o µ 10 On he second and hird displayed lines, change µ 02 o µ 12 once apiece on each line [12/4/2014] On page 1731, in he soluion o quesion 2(c), on he fir line, change o On he second line, change 1 p 02 0 o ( 1 p p 02 0 ) [12/3/2014] On page 1732, in he soluion o quesion 3(d), on he firs and hird-o-las lines, once apiece, change nubmer o number [12/3/2014] On page 1733, in he soluion o quesion 4(d), replace he las wo lines wih Acual number of deahs is 70, whereas pricing is 10,000p 45 q 46 = 10,000(1 0004)(000431) = 43 Higher moraliy han pricing leads o a moraliy loss [12/4/2014] On page 1734, in he soluion o quesion 6(a), on he firs displayed line, change e = COI o e COI [2/12/2015] On page 1741, he lesson reference for Fall 2005 Quesion 35 should be 30 insead of 11

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