ASC454: ACTUARIAL
PROGRAMMING
MORTALITY TABLE AND COMMUTATION FUNCTIONS
Ms Sarah Nadirah Mohd Johari, 2021
MORTALITY TABLE & COMMUTATION
FUNCTIONS
Define the following symbols in your own words:
𝑨𝒙
𝒂̈ 𝒙
Ms Sarah Nadirah Mohd Johari, 2021
MORTALITY TABLE & COMMUTATION
FUNCTIONS
Define the following symbols in your own words:
𝑨𝒙 - Net Single Premium (NSP) for whole life insurance with benefit of
RM1.00.
𝒂̈ 𝒙 - NSP for whole life annuity with benefit of RM1.00.
Ms Sarah Nadirah Mohd Johari, 2021
MORTALITY TABLE & COMMUTATION
FUNCTIONS
Complete the following table:
𝒙 𝒒𝒙 ?? ?? ?? ?? ??
0 ?? ?? ??
1 ?? ?? ??
2 ?? ?? ??
3 ?? ?? ??
…
100 ?? ?? ??
Ms Sarah Nadirah Mohd Johari, 2021
MORTALITY TABLE & COMMUTATION
FUNCTIONS
Complete the following table:
𝒙 𝒒𝒙 𝒑𝒙 𝒍𝒙 𝒅𝒙 𝑪𝒙 𝑫𝒙
0 1−𝑞 𝑟𝑎𝑑𝑖𝑥 𝑛𝑢𝑚𝑏𝑒𝑟 𝑙 𝑞
1 1−𝑞 𝑙 𝑝 𝑙 𝑞
2 1−𝑞
3 1−𝑞
… …
100 1−𝑞
Ms Sarah Nadirah Mohd Johari, 2021
MORTALITY TABLE & COMMUTATION
FUNCTIONS
Prove the following equations:
𝒕 𝟏
𝑴𝒙
𝑨𝒙 = 𝒑 𝒒
𝒕 𝒙 𝒙 𝑽 =
𝑫𝒙
𝒕 𝟎
𝒕
𝑵𝒙
𝒂̈ 𝒙 = 𝒕 𝒑𝒙 𝑽 =
𝑫𝒙
𝒕 𝟎
Ms Sarah Nadirah Mohd Johari, 2021
MORTALITY TABLE & COMMUTATION
FUNCTIONS
Prove the following equations:
𝒕 𝟏
𝑴𝒙
𝑨𝒙 = 𝒕 𝒑𝒙 𝒒 𝒙 𝑽 =
𝑫𝒙
𝒕 𝟎
=𝑞 𝑉 + 𝑝 𝑞 𝑉 + 𝑝 𝑞 𝑉 +⋯
𝒍𝒙 − 𝒍𝒙 𝟏 𝒅𝒙 𝒍 𝒙 𝟏 𝒅𝒙 𝟏 𝒅𝒙 𝟏
𝒒𝒙 = = ; 𝟏 𝒑𝒙 𝒒 𝒙 𝟏 = =
𝒍𝒙 𝒍𝒙 𝒍𝒙 𝒍𝒙 𝟏 𝒍𝒙
𝑑 𝑉 𝑑 𝑉 𝑑 𝑉
= + + +⋯
𝑙 𝑉 𝑙 𝑉 𝑙 𝑉
Ms Sarah Nadirah Mohd Johari, 2021
MORTALITY TABLE & COMMUTATION
FUNCTIONS
Prove the following equations:
𝒕 𝟏
𝑴𝒙
𝑨𝒙 = 𝒕 𝒑𝒙 𝒒 𝒙 𝑽 =
𝑫𝒙
𝒕 𝟎
𝑑 𝑉 𝑑 𝑉 𝑑 𝑉
= + + +⋯
𝑙 𝑉 𝑙 𝑉 𝑙 𝑉
𝑪 𝒙 = 𝒅𝒙 𝑽 𝒙 𝟏 ; 𝑫𝒙 = 𝒍𝒙 𝑽𝒙
𝐶 +𝐶 +𝐶 +⋯
=
𝐷
Ms Sarah Nadirah Mohd Johari, 2021
MORTALITY TABLE & COMMUTATION
FUNCTIONS
Prove the following equations:
𝑴𝒙
𝑨𝒙 = 𝒕 𝒑 𝒙 𝒒𝒙 𝑽𝒕 𝟏 =
𝑫𝒙
𝒕 𝟎
𝐶 +𝐶 +𝐶 +⋯
=
𝐷
𝑴𝒙 = 𝑪𝒙
𝑀
𝐴 =
𝐷
Ms Sarah Nadirah Mohd Johari, 2021
MORTALITY TABLE & COMMUTATION
FUNCTIONS
Prove the following equations:
𝑵𝒙
𝒂̈ 𝒙 = 𝒕 𝒑𝒙 𝑽𝒕 =
𝑫𝒙
𝒕 𝟎
=𝑝 𝑉 + 𝑝 𝑉 + 𝑝 𝑉 +⋯
𝒍 𝒙 𝟏
𝟏 𝒑𝒙 =
𝒍𝒙
𝑙 𝑉 𝑙 𝑉 𝑙 𝑉
= + + +⋯
𝑙 𝑉 𝑙 𝑉 𝑙 𝑉
Ms Sarah Nadirah Mohd Johari, 2021
MORTALITY TABLE & COMMUTATION
FUNCTIONS
Prove the following equations:
𝒕
𝑵𝒙
𝒂̈ 𝒙 = 𝒕 𝒑𝒙 𝑽 =
𝑫𝒙
𝒕 𝟎
𝑙 𝑉 𝑙 𝑉 𝑙 𝑉
= + + +⋯
𝑙 𝑉 𝑙 𝑉 𝑙 𝑉
𝐷 +𝐷 +𝐷 +⋯
=
𝐷
𝑵𝒙 = 𝑫𝒙
Ms Sarah Nadirah Mohd Johari, 2021
MORTALITY TABLE & COMMUTATION
FUNCTIONS
Prove the following equations:
𝒕
𝑵𝒙
𝒂̈ 𝒙 = 𝒕 𝒑𝒙 𝑽 =
𝑫𝒙
𝒕 𝟎
𝐷 +𝐷 +𝐷 +⋯
=
𝐷
𝑵𝒙 = 𝑫𝒙
𝑁
𝑎̈ =
𝐷
Ms Sarah Nadirah Mohd Johari, 2021
MORTALITY TABLE & COMMUTATION
FUNCTIONS
Show and derive the following equations:
𝟏 𝑴𝒙 − 𝑴𝒙 𝒏
𝑨𝒙:𝒏 =
𝑫𝒙
𝒙
𝒕 𝒏
𝑴𝒙 − 𝑴𝒙 𝒏 + 𝑫𝒙 𝒏
𝑨𝒙:𝒏 = 𝒗 𝒈 𝒕 𝒅𝒕 + 𝑽 𝒏 𝒑𝒙 =
𝟎 𝑫𝒙
Ms Sarah Nadirah Mohd Johari, 2021
MORTALITY TABLE & COMMUTATION
FUNCTIONS
Prove the following equations:
(𝑹𝒙 − 𝑹𝒙 𝒏) − 𝒏𝑴𝒙 𝒏
(𝑰𝑨)𝟏𝒙:𝒏 = 𝒕 𝒑 𝒙 𝒒𝒙 𝑽
𝒕 𝟏
(𝒕 + 𝟏) =
𝑫𝒙
𝒕 𝟎
𝒕
(𝑺𝒙 − 𝑺𝒙 𝒏) − 𝒏𝑵𝒙 𝒏
̈ 𝒙:𝒏 =
(𝑰𝒂) 𝒕 𝒑𝒙 𝑽 (𝒕 + 𝟏) =
𝑫𝒙
𝒕 𝟎
Ms Sarah Nadirah Mohd Johari, 2021
MORTALITY TABLE & COMMUTATION
FUNCTIONS
Prove the following equations:
𝑹𝒙 𝑹𝒙 𝒏 𝒏𝑴𝒙 𝒏
(𝑰𝑨)𝟏𝒙:𝒏 = ∑𝒕 𝟎 𝒕 𝒑𝒙 𝒒𝒙 𝑽
𝒕 𝟏
𝒕+𝟏 =
𝑫𝒙
= 1𝑝 𝑞 𝑉 + 2 𝑝 𝑞 𝑉 +3 𝑝 𝑞 𝑉 + ⋯+ 𝑛 𝑝 𝑞 𝑉
𝒍𝒙 − 𝒍 𝒙 𝟏 𝒅𝒙 𝒍 𝒙 𝟏 𝒅𝒙 𝟏 𝒅𝒙 𝟏
𝒒𝒙 = = ; 𝟏 𝒑𝒙 𝒒 𝒙 𝟏 = =
𝒍𝒙 𝒍𝒙 𝒍𝒙 𝒍𝒙 𝟏 𝒍𝒙
𝑑 𝑉 𝑑 𝑉 𝑑 𝑉 𝑑 𝑉
=1 +2 +3 + ⋯+ 𝑛
𝑙 𝑉 𝑙 𝑉 𝑙 𝑉 𝑙 𝑉
Ms Sarah Nadirah Mohd Johari, 2021
MORTALITY TABLE & COMMUTATION
FUNCTIONS
Prove the following equations:
𝑹𝒙 𝑹𝒙 𝒏 𝒏𝑴𝒙 𝒏
(𝑰𝑨)𝟏𝒙:𝒏 = ∑𝒕 𝟎 𝒕 𝒑𝒙 𝒒𝒙 𝑽
𝒕 𝟏
𝒕+𝟏 =
𝑫𝒙
𝑑 𝑉 𝑑 𝑉 𝑑 𝑉 𝑑 𝑉
=1 +2 +3 + ⋯+ 𝑛
𝑙 𝑉 𝑙 𝑉 𝑙 𝑉 𝑙 𝑉
1𝐶 + 2𝐶 + 3𝐶 + ⋯ + 𝑛𝐶
=
𝐷
= 1𝐶 + 2𝐶 + 3𝐶 + ⋯ + 𝑛𝐶
Ms Sarah Nadirah Mohd Johari, 2021
MORTALITY TABLE & COMMUTATION
FUNCTIONS
Prove the following equations:
𝑹𝒙 𝑹𝒙 𝒏 𝒏𝑴𝒙 𝒏
(𝑰𝑨)𝟏𝒙:𝒏 = ∑𝒕 𝟎 𝒕 𝒑𝒙 𝒒𝒙 𝑽
𝒕 𝟏
𝒕+𝟏 =
𝑫𝒙
= 1𝐶 + 2𝐶 + 3𝐶 + ⋯ + 𝑛𝐶
1
= 𝐶 +𝐶 +𝐶 +𝐶 +𝐶 +𝐶 +⋯
𝐷
= [ 𝐶 +𝐶 +𝐶 +⋯+𝐶 + 𝐶 +𝐶 +𝐶 +⋯+𝐶 + (𝐶 + ⋯+
𝐶 )+ ⋯+ 𝐶 ]
Ms Sarah Nadirah Mohd Johari, 2021
MORTALITY TABLE & COMMUTATION
FUNCTIONS
Prove the following equations:
𝑹𝒙 𝑹𝒙 𝒏 𝒏𝑴𝒙 𝒏
(𝑰𝑨)𝟏𝒙:𝒏 = ∑𝒕 𝟎 𝒕 𝒑𝒙 𝒒𝒙 𝑽
𝒕 𝟏 𝒕+𝟏 =
𝑫𝒙
= [ 𝐶 +𝐶 +𝐶 + ⋯+ 𝐶 + 𝐶 +𝐶 +𝐶 + ⋯+ 𝐶 +
𝐶 + ⋯+ 𝐶 + ⋯+ 𝐶 ]
𝑀 −𝑀 +𝑀 −𝑀 +𝑀 −𝑀 +𝑀 + ⋯+ 𝑀 −𝑀
=
𝐷
Ms Sarah Nadirah Mohd Johari, 2021
MORTALITY TABLE & COMMUTATION
FUNCTIONS
Prove the following equations:
𝑹𝒙 𝑹𝒙 𝒏 𝒏𝑴𝒙 𝒏
(𝑰𝑨)𝟏𝒙:𝒏 = ∑𝒕 𝟎 𝒕 𝒑 𝒙 𝒒𝒙 𝑽
𝒕 𝟏
𝒕+𝟏 =
𝑫𝒙
𝑀 −𝑀 +𝑀 −𝑀 +𝑀 −𝑀 +𝑀 + ⋯+ 𝑀 −𝑀
=
𝐷
𝑀 +𝑀 +𝑀 + ⋯+ 𝑀 − 𝑛𝑀
=
𝐷_𝑥
𝑅 −𝑅 − 𝑛𝑀
(𝐼𝐴) : = 𝒘𝒉𝒆𝒓𝒆 𝑹𝑿 = 𝑴𝒙 𝒂𝒏𝒅 𝑺𝑿 = 𝑵𝒙
𝐷
Ms Sarah Nadirah Mohd Johari, 2021
MORTALITY TABLE & COMMUTATION
FUNCTIONS
Prove the following equations:
𝒕
(𝑺𝒙 − 𝑺𝒙 𝒏) − 𝒏𝑵𝒙 𝒏
̈ 𝒙:𝒏 =
(𝑰𝒂) 𝒕 𝒑𝒙 𝑽 (𝒕 + 𝟏) =
𝑫𝒙
𝒕 𝟎
𝑴𝒙 = 𝑽 𝑵𝒙 − 𝑵𝒙 𝟏
Ms Sarah Nadirah Mohd Johari, 2021
