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Calculating \(\overline{A}_{xy}^{01}\) and \( {}_{t}p^{00}_{xy} \) ?

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asked Oct 10, 2017 in BUS 3024S - Contingencies by 1107 (150 points)

Lets say \(u_{xy}^{01}= 0.01 +0.05*1.05^x\) and \(u_{xy}^{02}= 0.01 +0.05*1.05^y\). Where x is the male and y the female. And state 0 is both alive, state 1 is male dead, female alive and state 2 is female dead, male alive.

I would like to calculate 

$$\overline{A}_{xy}^{01} = \int_0^\infty e^{-\delta t}  {}_{t}p^{00}_{xy} \mu_{x+t;y+t}^{01} dt$$


$${}_{t}p^{00}_{xy} = e^{-\int_0^t (\mu_{x+s;y+s}^{01} + \mu_{x+s;y+s}^{02}) ds}$$

(Please correct me if any of the above formulae are wrong)

My issue comes in when we are given \(u_{xy}^{01}\) instead of \(\mu_{x+t;y+t}^{01} \) and the same goes for \(u_{xy}^{02} \), how do I use the above equations and those integrals.

1 Answer

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