Chapter 2 Summary Notes and Equations

Robin Cunningham, PhD, FSA

6/18/2018

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Chapter 2 Advice

Both concepts and notation are important in this chapter. I recommend two approaches to make this chapter and the whole course much easier:

  1. As much as possible, try to ignore messy formulas and be able to put formulas into words. As a simple example, don’t memorize something like \[{}_t{q_x} = 1 - {}_t{p_x}\]
    Instead, say to yourself: the probability of (x) dying in the next t years is one minus the probability that (x) will live for the next t years. This is exactly what the formula says and there is no memorization required.

  2. For every example in the textbook, cover up the solution and give the exercise a try first on your own. Often you will not be able to solve it, but it makes the solution sink in more effectively when you read it.

Chapter 2 - A Few Important Expressions

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