Solutions Manual for Bowers’ et al. ACTUARIAL MATHEMATICS: LIFE CONTINGENCIES AND RUIN THEORY FOR THE ACTUARIAL STUDENT Michael A. Gauger, Ph.D.CONTENTS Chapter 3 Chapter 4 Chapter 5 Chapter 6 Chapter 7 Chapter 8 Chapter 9 Chapter 10 Chapter 13 Chapter 14 15 28 37 al 47 60 a 83 1 iii@ se) = i) f@ = ® Fe = 1-50) f0) = -9G) =e a) = =H = 1 (Note: Age-at-death has an exponential distribution; in such cases, the force of mortality equals the constant in the distribution, here = 1.) © s@)= 1-Fe) = +7" fa) = F@ = +07 F'@) wO)= poRG = Gta? + Gta? = +x Ineach case, u(x) > 0, and ie pG) de = 0 lo @) so) = 0] - [v4] ~ool-2-{] = en| Bee - | A koa we Oo se = ov|- [vee = olan | = on |-8] i © sx) = oo - [eos 0y*] = on| anova) i] ‘s(x) can be a survival function, since s(0) = 1 and lim si = =0 5 exjand—amora)=[p2z] = [ue Fe) = 1-s@ siete f@) = — 90) = War eel? ny = 2 - 1M cae SQ) sx)Chapter 3 @ [ a = (tay? de = -120+07) = 12 < 0 0 (®) Although (0) = 1 and s(3) = 0, s(x) is not monotonic ‘over {0,3}. That is, s(x) > 0 for some x. © [ Se) dx = [ x1 el? de 1, as required for fix). (To prove this, let so the integral becomes 2" ye dy, which is 2" 1 (n) > 2, sincen > - = 2, Wonx _ 1 @ ne) = * 100 * “100 = oO=x x ©) FQ) = = 100 1 © fe) = - $0) = 75 @ = Pr(l0 algo = .-As®) = -1 | = 5(0)—s(oo) = lo i=0 =o n a4 9. 2l2920 = 2-292 = OP [-£ wal { (f woe) e--2(1 — 2) = 00199401 = .002 10, £(65) is a binomial random variable, with n = 10 and p = (65) isf) = (2) (.TT1O7$(.22893)!°-*, x = 0, 1+, 10 E(£(65)] = mp = 7.7107 V[£(65)] = mp(—p) = (7.7107)(.22893) = 1.7652 77107. Then the p-f. 11, Letpiei = 1, 2, 3, 4, be the multinomial parameters of the four random variables. RV sDo FR) = 3Ds FO - FR) = 4 3Ds FQ) - FO) = 4 3Do FQ2)~ FO) = § (@) FachRV has E[D] = -p = 9 (b) Each RV has V[D] = n-pi(l-p) = a Cov(Dj,Dj) —M-Pi* Pi 9/16 1 (© Each ry = = cep. Soe Le 5 Toy voy Pd 26 3 98347 12. @ sqo = 1 — 98495 = .01505 sas = 1 — ggg = -00150 a0 — Las 43180 — 27960 bs 97110 = .15673 ©) sslsqs13. 14, 15, 16. Clearly, if &4, is concave down, the drop in the curve (d,) is greater than the numerical slope, so a > ua). Conversely, if é41 is concave up, then the ‘numerical slope exceeds the drop, so (x) > 4x. (Note: If é,4, were linear, then, clearly, (x) = gr.) Sell w0))= be A pee) + we Le, = 6-2 wa) — 6 nO? = (Fe mee) ~ way 2), Then clearly £(e, y(2)) $ 0 when wey = we? Both ¥, and Ys are binomialy distributed, with £(¥,] = (1600) (38 Var(t) = (1600)(38) ($8) = 364, z[¥3] = (640)(38) = 360, Var(vs) = (360)(53 = 120. Since Yj and ¥, are independent, then E[Y, +¥3] = 1400 and Var (Yi + ¥2) = 484, whence SD(¥; + ¥3) = (484)! = 22. Using the normal approximation, the value of c, which has a probability of being exceeded of .05, is: + 1.6450. Thus = 1400 + (1.645)(22) = 1436.19. The future lifetime is ¢ for 0 < 7 n. Thus the expectation is 8,57 = fo't-spase(de +n J peug(Odt = fi t- spetlt) dt +n +P Integrating by parts, 8.57 = —m+ ape + [p's dt +n aby = fo iprdtChapter 3 5 17. (@)_ Kis function of K so its expected value is given by wort ELK’) = LK wrRcae b= oe. sla +o alge “War Pa ered = Skala tne (since wp: = 5° ule) ro fen Dk Gre — ed +0 ws ra = (1)QPx-2Px) + 2@Px—aPx) + ++ + Pena) +> ns Px + 2Pe(2-1) + spx3-2) +++ + aPx@—(-1) = Pet aeto tae 0 (b) Similarly (K*)? is a function of K and its expected value is computed as AUK] = Le wyrrak= ® -Se- lat elas i} Fe alae tae rad P°(pe—2Ps) + 2QPs—aPx) + PGPr—aPd) poet OIG APsmnPa) tM? + Ds We + 2p(4—1) + 3px(9—4) + => + gal? —(2-1)?) = Vek- dere. ii Using the above with Var(K*) = E[(K*))] — EK")? = EUK'?] — @,])* completes the proof. 8. @ A= & = [esoa = [oveta=} = [soa Pie de = 22 &) =r’) f PFO f e . Then Vor) = HIT} ~ CEN? = 3, - (©) If Median (1) = m, then Pr (F< m) = 3, 80 3 [row m2 c 1 Then e-™" = 3, so om =~ In}, or m =-ling=19. @) Pr= exp [- f Bx()dr) 20. 2. ©) Chapter 3 ~ [ral een 20 [- [ra] =e?» PsHis(t) = t-e*? tenes =f eetta a1 [* peer a [Fr eanto at [ee at bf te at This is } /2n- E[7*], where Tis unit normal, Then £2] — (ein) = vey =1, bu FIN] =0, so E[r*] Thus &=} Jin = [Pea ap If FO) (100 —2)"), thenf() = FW) = (100-x)! @ 8 E{T| [a fio) dt [cao yt & = = SI =x) lo " wor = po00—art A = 7(100-x) 10-2 fi sonny © zr] -f PQ00—x) dr = j.00-ay-t af = }a00-x7 0 0 2 Then WT) = E(r}*— (Ell) = jy0000~ 2)? ol-= [Proe =" m()-(100-2)71; thus my = 400-2 27h B 2 O_O best ba = betitte()) = See = Gt) ) © a ee GF = St), jae = palule) — 14(0) © g£&= Ef ee = FF 2x09 toy ae = i & 1 © Mee = erat — ee Nower = pe + Pet ape to, 80 x = Px(l + Pest + Pest + ---) =. Pal + Cet) Thus Ae, = ers1 — Pr(ltér) = eee Px) Px = Geert ~ PxChapter 3 7 22. 2. (@) a(x) is the average number of years lived by those who die in [x, x+1]. Then a(x)-d, is the total years lived by such deaths. £41 is the total years lived by survivors. Thus a(x) +d; + &41 is total years lived in [x, x-+1], which is L;. (b) Lo & Hlo+hs) = }(198,740) = 99,370 # Lo in Table 3.2 Ly © G46) = }(197,388) = 98,694 = L, in Table 3.2 (©) This is clear from equations (3.5.12) and (3.5.16). If s@) “ O) Chapter 3 me t= 7 Thus m, = This time we write, from (3.5.13), my = it follows that m, = p = -In(l—g,). Dividing (3.5.13) above and below by ¢,, we have Dette dt py Se ae (1 — ge) a So % [1 Das) dt 2 ~4% —Psinp, ~ (=a) in =a) 10 (50-Hdt = 450 lo = todso Clearly rods = 10, 80 som = 97 = 1145. Given 22 js independent of k, prove K and S are independent. But K and S are ee independent if Pr[S < 5 | K =k] is independent of k. But PrS1 > fs) = ae + is a density on [0, 00) ” i 1-2) a [> ~aas = 1 _ (ae o [ [ asa = Gapaay >? > fern = "Te sa joint density for 0 <5, tn) = aPry = Px Py, by independence. (0) Pr[7(x) > n and TQ) n and Tix) < n) = Ps (1 Py) + Py (= Ps) = Px + nPy — 2° ePr* Py: (©) Prfat least one survives] = 1 — Prineither survives] ie Pr{max{Ta, To) (-1Ps040 ~ :P30*1-1Pao — Pao “s-1Ps0 + P3040) i = YC ps.40 — Pro r-aPsiaa ~ Pao e-1Ps0sr + Psofo *+-1P 31-1) t= Now So iy = 1+ Do Py = 1 +e Thus we have ti t= 1 + e040 — Pro (1 + e31:40) — Pao (1 + €30:81) + P3o:40 (I + es1:41)64 16. 17. 18. 19. 20. Chapter 9 ‘The probability that both will die at age 40 + f last birthday is (,o4eP30 — 114«Ps0)(pao — r+4Pa0), and the overall probability is DY GosPs0 = 114:P30)(P40 — 4120) = = 2; (Ps Par — UP 30+ Paso — 3030 ~Pao “Pao + u4P30 “Pao -Parsar) Pan = 1Ps0(1 + €40:40) — 2+ 14ps0 (1+ e40:41) + 1130 Pao (1 + 41:41) For T = (1,1), we seek Pr(2n Then A, FIZ) =v" ade + nly = Ay — Aig + Pd Ay — Gray —¥" Pd) + 9" — Vs Cov [y™, vr) [v7 yt] = 755] Ely] = Ely™®.y™) — [v7] Ely] = Ely™]E [v7] - z[v™]z[v7™] due to independence Senate For 0 vt passa ‘1 & ints = 20/430 + 25|@25 — 2514252066 Chapter 9 26. By current payment techniques, “1 1 1 apy = Lv [o + 5 wy (Lap) + 5 1-p| 1 i) M w(bis $+ bo) yay nie ny S ag + ee ae at 27. A payment will be made at time k if (1) xis then alive, (2) _y was alive at time k —n, so that time & is during y’s lifetime, or within n years after the death of y, and @) ks m Then apy = Sv" ae aby = VE ie + D2 VE pie k-nDy, Sine p-nPy = 1 fork Sn fe aoe = a + OW panda Py, Where] = k—n ja = Oa + Ex DY Pe Py i Fey + AEs Oren yin al 28. The annuity is payable for the following ranges of #, under the stated conditions: <5: not at all, since neither is over age 60; 5 <¢< 15: only if (55) is alive and (40) is dead; 15 20: if either is alive 20 a v'pss dt + £ v pasag dt os oe 15 [ Yasar + f V" (Pao dt -[ v! Deoss dt -f v! ipao:ss dt s Io s ho e trenepy= [vps 0-omya +f I, : u = 51455 + 201 49 ~ 5] 1040055 — 201 AoL Chapter 9 67 29. (a) Payment is at 1 per year while x lives, and p per year if y is alive with x dead. This is the same as 1 for lifetime of x, plus p for lifetime of y, minus p for the joint lifetime. Thus apy = a+ p-a™ — pa (b) Let the initial payment for the joint and survivor be 1, as above. Let the payment rate of the life annuity be r. Then r-a = a + p-al— p-a™, ao and the desired ratio is + i +p 30. @) Ay+A aogtlz ; (1, = yyy Ary + Ay =A,. Subtracting, = (18a) — (1-64,) = 5(@, — Oy) = bay) () Using g Px = psluls) — 1,(0) and differentiating under the integral sign with respect to xgives LA © Ps BG) = [VG aa = f[ VpsuQ) — Pstx(Oqyat lo = phy ff V" pay — f[ YF utteO) yd = BOG, 31. From (9.8.4) and (9.8.5), we have Hx(S) + Hy(S) = 24 + Bel(ct +0’) and 2py(s) = 2A + BeK(2c"). Then ch +0 = 2c*,ore™? +1 = 2c", solog (cA +1) = log2 + (w—y) loge, — log (A +1) — log? cf wey = loge68 32. 33. 34, 35. Chapter 9 In either ease, dsp eaoq = As060 — 10800 do70- 4 yl 0 Eso. =v" sapso * pS + = 4127435 10 50:60 10P$0 * 10P60 230° TG } (@) In Example 9.8.1 we found that w = 66.1276 replaces (60:70) ‘Then by uniform seniority, w = 56.11276 replaces (50:60) By interpolation, dso.49 = 88724 disg.s5 + .11276 disz.s7 = 10.19419 From Example 9.8.1 we have digg. = 7.55637. Then dsy¢q797 = 10.19419 ~ (.41274351)(7.55637) = 7.075349 (>) More directly, 456079 = 10.19438 — (.41274351)(7.55633) = 7.075554 (a) Since (ww) Gy), then rw = Pw)? = Pry = Pr" Py Pw = (Px Py)", the geometric mean. 2 (b) Consider the quantity (2? = a] > 0, due to squaring. ‘Then [px — 2GPs* Py)"? + py] > 0, 50 Dx + Py > Ups)? = Aww)? = 2-wDy (©) Since ps + Py > 2+ Pw, and Py = Paw then Pr + Py ~ Pry > Pw + Pw — Pwe.so Pz > Pre andas > a, a, = if V Py dt = oe chr Hes ay - t et BUF B ay Now we leer c+ 0, and obtain a, = [ et otk pho AtBenas ay = [oO ve = [ea = Gi, , where’ = 644 Further, dy = 1 ~ 64, 1-64, = 1-(-Aa, = 1-80, + Ad, ‘We wish to have dry = Gin, Which will be true if u(xy) = (ww), or if HG) + uFQ) = UM) + FW). Then3a+ pat by = 30+ MM 404 bw 4a + 0(3x+)) 5 4a +b (3 w) Swe Bety ae? wos 3x4 ayChapter 9 1 1 37. Since gy = qy = 1, then 8, [ eae fa-s0-o8 38. If T(ay) were uniform, given T(x) < 1 and T(y) < 1, then this conditional FITey) | TR) < 177) < 1] would be t. Prob. of the condition —S . Now Pr{Tiy) < t| Te) < 170) < 1] “Ge +g = unconditional probability. We note that the unconditional probability we desire is the probability that the first death is before £, with both deaths before time 1. This can be written as 19x (Qy — Ay) Gy Ge = I) Me ty = 19x Iy F ey Ie ~ Dey fds Gy + Gy Ge ~ Pde td yp ay Gy # 39. } = [inasay! = Call this part I. Systematic powers of J will then apt = Fler Pah + 2 P1078 , mainte 2 P19 i_,,i_@, 8 _ 19% ta mot | Teng = 14+ 9- Gat 24 m0 Tt B i an70 40. JAlmPsy ~ inte S PUimPs mB — ja simPy = O-FPa)0 Now replace x, y with x-+k, y +, and substitute into (9.8.13), obtaining Ap = Sv iy Loe Geskyee + maT ast: “gst) 0 Chapter 9 We Gy = SS yim, m+ I — 2 = yet Bay Gest GP + DOV iPay Gest ya Dwi BALA & ms i - agen ‘ [Ewe(s+3 +h ern = awd + [trod + hat Dae — 20+ 90M 19> a f a k=O ues at Dee. = (8.14) omCHAPTER 10 (From (10.2.10), frst.) = OHM). Now pO = eH — e-em), since 2G) = So Eis constant. Then frat) = n@em@ © Ho = [ hss.nd = HP [iorma 0 lo BP) HO) © fi) = Lehto d= eto 5 BG) = pay eh HO ja Tand J are ‘dependent, since the joint distribution is the product of the marginals: fred = FOF First we obtain pg) = @ frit) = PQeho = 3(50 = SP © HO = Shed = mi - : . © Ho = [hada = Lowa = A[-}00-2'|3] =u © fil. = fix 10-F0. 50019 = fp =k = plus tv et" + (1—p)(up-tva)e“ Ort P 1 $= LB Fekt, Yet = (PAL 5. CoP =_ (=p)v2 FO) = 15 * ne © S00 [Hoe= persone orChapter 10 4 v8 = PB-- 0f = [as] a2] [1-5] [1 — (.02 + .05)][1 — (.03 + .06))[1 - (.04+..07)) = (93.91.89) = .753207 sla? = ap -q® = (.753207).05) = 03766035 A+ B+ a = “4 | en = .16504, using the table of Example 10.3.1 ss 5. (a) Probability of graduation is

) Similarly, number of failures, F, is binomial with n = 1000, and a P= 4g) = 15 + (.60)(.10) + (.60)(.70)(.05) = .231 Then E[F] = np = 231, WF) = np(i—p) = 177.639 afd re 6 g Qa B= OP 0 1000 150 250 1 600 60 120 2 420 2 63 3 336 _o 33.6 | 231 166.6 @ fay = ‘eens _ 231 fi2) = Seales iar Bar isae graduates _ 1000 ~ 231 ~ 466.6 _ £0) To00 S000 «8024 (b) fii |k=2)- Prk =2) = Pritermination atk = 2 via mode j) Then fl | k= 2) = $8 25 and fy(2 | k # =. Of course f(3 |k = 2) 5 0.LL Chapter 10 ae = g-exp\— fp 2 rater ie a 7. (@ From(10.4.1), 6°= @ oo f 2) + a! 04] =a oo fo + >) 4] eee 5 | = (@-ne* 1 1 o_ [| Mma = og = et eel @) f Oe Hy Oat f ent de € e ; © Mya = fe [eon = [ 1 1 - [era lo = (@-ne* — @-x- Nett = et ert = -@-x-Newt = (a—x-eF— @-x-2Dert : (r) 7 2y 8. Again, £? = 1000 ex -[ c+ gain, £7 Ah Cares = 1000 exp[—cx-+ in (2-#)-m a] OH — OD. = MG ay af i uO — Gre — Pu 9 @ &a -E = mS” (@) BHP - xe) of 0 = 7a = pou | oP » da = $2 Of- Ou + Guol - [BO - A] — PuPoy = oy = gl we + Lao + (2 ~ 2) xe) | nO + a? uC) — wR) a O-8, © ga = g2a% = blasro] = to74 u. 12. Chapter 10 = ie ool ty log “| 1 — exp| 8 tog.60] = .17433 vi 2 1- eio| 3 t.00| = 27332 i eo| 35 te.70 = 11210 1s eo| 3 ie. = 21163 i eo| $ tog. 80] = .05426 te eo| 33 1.80] 15410 40= @ = 0 g%= @ = .0 @ gO = 1- pM = 1 hoe Ly ge a fo Pe ww at clo we at om = Rea =~ Pa = * he ew a © @= [emo - = of’ oa fb Let each decrement be uniformly distributed. Then the total is so distributed, so PO UPD = @?, and o mf wy 4 Ma ® mf 34 =o, o @® = (b) Likewise, pn) = a, leading tom? = oe 1-30 & & © @= wp = 2 Bale if all decrements are uniform, so q? Assuming a uniform distribution for decrement (j) only, (i. of Chapter 3), , in the single decrement mode!Chapter 10 a wo _ dy. 13. As shown by (10.5.3), @ > q. Now my’ = 5 in the single decrement model for decrement (j), whereas gi = &. Since wP() > 0, Ly < &, 80m > 9. Therefore, mi, > 4 > q? 14. pig? = 1 — dg? = 98, and pig? = 1 - dp = 96. Then gf) = 1 - pQ = 1- p+ pip? = 1 — (98.96) = .0592 ni A 5. @ d=—P— = (under UDD), so p°? = 7p Pa” 1+ mg o@.10 2m 4 Then pg” = Ty 80g = Tr = 09091 ay (b) By assuming UDD in the single decrement tables, 1{)(0) em =e q (2) Bo = sy. Then WYO = HOO + HOO = — ay tT 1g 1 g@ to = fi-ed?] (1- -f Getr na| = [t #49] (1-1, Then o Li enQeo at m= 20 = 28 So Pag 1 + gi — 246 ¢| ae fi ela, + 9g 1@) 27 = 20,s0g2 = 22 = 0906 Tony + $0 dan 95 - % ao 98 576 - Chapter 10 16. Under the assumption, m? o o % byes te ~ ~ I-79} 17. First we find p® == [! 5 ¢°| [! = 4°] [! _ «| Thus, p= .76048, gi) = .23952 PQ = 85027, g = .14973 Pe = 82115, gf) = .17885 Then g = fa = — 87478166 np) de = 01767, 92 = .02665; 4 = .19520 Similarly, gf) = 02054; gf = .03193; gf = .09726 gee = 02578; gf) = .03705; gq = .11603 18. The result is direct, so no “solution” need be illustrated. The purpose of the exercise is to show the closeness of results to those of Exercise 16. 19. @ 1, ~ m® is justified by the constant force assumption. a a ya» if decrements are uniformly Ge 1-3-4 distributed in both the single decrement tables and the multiple decrement model. 0 ol 2 @ 4 [i aaa 4° 2 [ — a| | which in turn implies (b) Accepting that m{ = m, then (©) Clearly this leads tog!” = orto ) Afr —b og? 4 3g?) = 0? org? we Ie Ba +A Ie Ge TAQ gh alae ~ 4%kL n 02073, etc. 1052 } (.02052) = .02073, ete. 21. (a) There is no justification for this relationship. 4! = ay assuming UD in the mi multiple decrement model. ) i Ode = LO % wr Li go (if@isupD) = &- 3-19 -mi, ict ee @ so zolt + zen? we O,and 1 5 (ACCEPTABLE) 1 (©) We know q( = f POO de = f Pe POM de 6 1 [ ive .9)|q4 de , under the stated assumptions b (ACCEPTABLE) : 2 [Si wg? = Ka, then [/ POW) ds = Ky lo Differentiating both sides with respect to ¢, we find POLO = Ky wu, of WO = Kj WOO, as required [ Dus) ds FSi: LHS. of Gi) = 1-49 = eros _ S24 (trom Gp) a oye = {1- a?" [esa pf = {o}* from (ii); RLS. of (iii) HOC), as required8 23. 25. 26. 21. Chapter 10 uP = Kyl, then p- POWs) ds = Ky f PP UP) ds, PQ) = Kj Pu for allt Thus or gf! = Kj-., as required. (@ Tand J are independent if and only if fred) = fri), that is, if and only if PP uhO = HPO ( f #120) at. Cancel ,p‘” from both sides above to obtain the desired result. 0) BO = Prt, >) = PRT, > tand T, > 0) = Sn,1,(6.0) = S1,O5r,0) (indep. of T, 72) =e Wea Now replace y{(s) by Kju{(s) from part (a) and the result is finished. Alll results are direct, so no “solution” is illustrated. If each decrement is UDD, then so is the total (r). om - 242. a89 ® wo = = ath 2 e l-tq l-tqg i and pPC/2) = ——tray = my as established in Exercise 12, 7 24s (a) Equation (10.6.3) allows us to express q® in terms of the three ¢{, from which q, can be obtained. Construction of the table from a set of ¢”” has already been explored. o a , g (b) Here we would solve for g, using 9," = = id 4 % 1-52] 1 see [This relationship was developed in Exercise 19.) Having all g? establishes the multiple decrement table. Pine eeChapter 10 9 28 ow decrement 3.has been changed from Example 10.6.2, so we still have qf = .03723, and = .01843 from Example 10.6.2. In this problem, however, 49 = 1. To = = 1-qQ-@ = 94434. 29. 1000 _, g00 +t 50 200 51 Since d2 = q® . 2 = 200 withdraw immediately following age 50, only 800 persons begin the interval (50, 51). Since &? = .06 dg) = 12 die, then geo 22 = .015. Note that, since no one can withdraw during the year of age, we really have a single decrement (death only) model. 800 30, We seek the probability of termination for cause 1 or 3, or no termination at all (j.¢., survival to age 65). © 0 © as — 50 + «0 _@ 1-45 = _a-@ Prob = 45g) + sq) + asp 31. (a) One way is to use the relations m? = m,? r= =1,2 mi? rem, and then gy’ = 7 = 3,4. The advantage of getting all four 1+ fem? ‘ 9 is to produce p°” from p = TI (1 - 4°). Then the q? are obtained from the ii ,® by assuming UDD for each single decrement. cs K ©) adh? = af? - x? = if wwe yde = 1 - Ps aI80 Chapter 10 32. Reasoningly, q” is smaller that the “real rate” (or net probability) because of the operation of the other decrements. ¢,” is the probability of falling to cause (/), if only it could occur, up to age X+1. It is reduced by the probability of falling to (7) before (x + 1) after leaving for another cause. This nets to the probability of falling to (/) while in the group, which is the probability represented by @!”, More formally, the given identity is the case t= 1 of the more general relation e- G+ > [ POUL) dO, ds = 0. gf Jo Let F(p) denote the LHS of this equation. The student can verify that FO = Wod-a?) - Poa-4.)+ > Hi POU) Arq? OAs, ky which can be seen to reduce to w? (0) -—F(), so that p(t) Fl) +F'() =0, fort > 0. Ibis also clear that F(0) = 0. Thus we have an initial value problem in differential equations, whose unique solution is F(®) = 0, fort > 0, which establishes the desired relationship. 33. @ @ wi? < pi, for Fama” © i) p>. 1 Peal PLP dtp? «pil 1 < L wehavew() = Pr < ow! it) Lec = ¥59. Then F(Q) > Land Fl) < 1 by parts (i) and (i). Also Fis Continuous and decreasing (since Fu) = k- TI 9%”). iW ‘Thus, by the Intermediate Value Theorem, there is 9 unique r ¢ (0,1) with F(r) = 1, ie, WE) = Wy, SEGUE meneChapter 10 81 (©) From part (a), the graphs of w) and w” are shown below, and we want to show that the woe 1 N shaded areas are the same. But this is equivalent to 1 Le eal i [w@ — wo] de = 0, which is obviously : A 1 true, Oo or 1 (©) This is an immediate application of the M.V.T. for integrals. (Editor's Note: These solutions to Exercises 32 and 33 were contributed by David Callan, Mathematics Department, University of Bridgeport.) 34. First we will need some pieces: © nl gn 0 = WO +O = pee , 1 pig meng? = | [oto] olf PES 4] vo 1 eB ds _ ee - SP se et = oo | [ sole ds | em eras fo We evaluate [ so! e°® ds by letting r= Bs, sos = r and ds = Be ‘Then we have lo eee eae tet seal ieee eevee [et ero bar al rae B° Te). co Rs Be ut Thus Pe = Peles = fas a " % lo oP ds, @ NowhA) = alo = Hert eM, for) Tray = CEO ot em, forj=2. Next, fi) = [104 5 & sete ds = Eee T(a) = 8, forj 2 Likewise, f() = 1-6, forj=2. Finally, fA) = > files) = Pee ively. i © zn = Hi tft) de = taf ee at ; ° = tf Pot, where &= a+ 1 A 1 for © = foo Te+h = ferro sapl=g i}82 Chapter 10 Similarly, E{7?] f[ ” 2 finde = te f[ * ptt oP a = te f Pl eM de, whered = a +2 = fm etre = By oo re+2) = feet e@tpret+) = fey+ err = ser Te Te Then Var) = e*) - {ern}* = ser) - (3) = © In general fj] =) = w2/u@. From the given formulas for the forces we see that A|T=1 = 6, f2|T=) =1-0. In (@) we saw fi(1) =, f(2)=1-6. Since the marginal and conditional distributions are identical T and J are independent.