Actuarial Societies
What actuarial society do healthcare actuaries get credentialed with?
Society of Actuaries
Policyholders pay this monthly to insurance companies
Premiums
Consider two events A and B with Pr(A) = 0.4 and Pr(B) = 0.7. Determine the maximum and minimum possible values of Pr(A ∩ B)
(0.1, 0.4)
P0 = D1 / (r - g) is the formula known as
Bonus: give three names for the variable "r"
the Gordon Growth Formula
-
Cost of equity, required rate of return, discount rate, ...
I have keys but no locks. I have space but no room. I can enter, but can't go outside, what am I?
A computer keyboard
Name 6 Pre-ASA exams
ASA: P, FM, IFM, LTAM, STAM, SRM, (PA)
New: (FAM), (ALTAM / ASTAM)
On a balance sheet, these are liabilities that reflect an insurer's financial obligations with respect to the insurance policies it has issued
Reserves
The probability that a randomly chosen male has a blood circulation problem is 0.25. Males who have a blood circulation problem are twice as likely to be smokers as those who do not have a blood circulation problem.
Calculate the probability that a male has a blood circulation problem, given that he is a smoker.
2/5
41) Which of the following statements about market anomalies is/are true?
I. For IPOs, the high returns observed in the first few days after a new issue are often followed by relatively poor performance in the years ahead, suggesting that investors underreact to the initial news.
II. Investors typically overreact to earning announcements, causing a subsequent price adjustment.
III. The momentum effect is inconsistent with weak-form market efficiency.
III only
What are the two levels of designation an actuary can receive?
Associate and Fellow
name 5 companies that sell life insurance
NYL, MetLife, Prudential, MassMutual, Lincoln, John Hancock, Guardian, Pac Life, Equitable/AXA, State Farm, GA, MOO, Transamerica, AIG...
If 12 balls are thrown at random into 20 boxes, what is the probability that no box will receive more than one ball?
20! / (8! * 2012)
Stocks F and J are valued using the dividend discount model. The required annual effective rate of return is 8.8%. The dividend of Stock F has an annual growth rate of g and the dividend of Stock J has an annual growth rate of –g. The dividends of both stocks are paid annually on the same date. The value of Stock F is twice the value of Stock J. The next dividend on Stock F is half of the next dividend on Stock J. Calculate g.
5.3
You are given a 3-liter jug and a 4-liter jug. You can fill each jug with water, pour water from one jug into the other, and discard the water from each jug. There are no additional measuring devices. You start with no water in either jug. How can we measure exactly 2 liters of water in the 4-liter jug?
Answer:
- Fill the 3 liter jug all the way
- Pour that water into the 4 liter jug (now 3 liters in 4-liter jug and 0 liters in 3 liter jug)
- Fill the 3 liter jug again (now 3 liters in both jugs)
- Pour the 3 liter jug into the 4 liter jug (2 liters in 3 liter jug and 4 liters in 4 liter jug)
- Discard of the water in the 4 liter jug (now 2 liters in 3 liter jug and 0 in 4 liter jug)
- Pour 3 liter jug into 4 liter jug (now 0 liters in 3 liter jug and 2 liters in 4 liter jug)
How many exams to be an FCAS
RBC stands for Risk-Based ______
Capital
The owner of an automobile insures it against damage by purchasing an insurance policy with a deductible of 250. In the event that the automobile is damaged, repair costs can be modeled by a uniform random variable on the interval (0, 1500).
Calculate the standard deviation of the insurance payment in the event that the automobile is damaged.
403
David can receive one of the following two payment streams:
(i) 100 at time 0, 200 at time n years, and 300 at time 2n years
(ii) 600 at time 10 years
At an annual effective interest rate of i, the present values of the two streams are equal.
vn = 0.76, calculate i.
3.5%