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in BUS 3024S - Contingencies by (860 points)

Hi


Can you please explain how to approach and solve the following question?


image


Thanks

by (2k points)
We have a couple of methods but would you be able to provide a little more context to your question? We are struggling to pin down the precise nature of the question. 

Could you please provide us with where you found it and potentially any parts of the question that preceded this one? We would like to double-check that our answer is the correct interpretation of this question.
by (860 points)
edited by
This is from the 2009 Institute April paper, which Matt has kindly attached below. I was wondering if there is a different way of solving the question as I don't quite understand the workings in the memo. This is a separate question on its own with no preceding parts.

1 Answer

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by (990 points)

From 2009 IFOA exam.




image

by (860 points)
Thanks, @Murray this is the memo's answer, I don't quite understand the working out.
by (2k points)

I've added my answer along with a quick explanation to my comment here. Hopefully this helps understand the process but let me know which step is giving you trouble.image

by (860 points)
Thanks, I see where I went wrong now
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