Description

MECE-103 Solved Assignment English Medium 2023-24 for July 2023 and January 2024 Session

MECE-103: ACTUARIAL ECONOMICS: THEORY AND PRACTICE

Tutor Marked Assignment (TMA)

Course Code: MECE-103

Assignment Code: MECE-103/AST/2023-24

Maximum Marks: 100

Note: Answer all the questions.

Section A

Answer the following questions in about 700 words each. Each question carries 20 marks.

1) Discuss the approach to ‘Geometric Brownian Motion’ with its applications to the Mean Reversion Models.

2) Explain the concept of Classical Credibility.

 Section B

Answer the following questions in about 400 words each. Each question carries 12 marks.

3) Write a note on the concept of Martingales with illustrations.

4) Show that the ‘Linear Accumulation Function’ is valid for all real numbers.

5) Distinguish between the terms ‘annuity-certain’ and ‘contingent annuities’.

6) Explain the significance of a ‘probability density function’ in the measurement of death.

7) Define the concept of ‘loss function’ with suitable expressions for different cases.