Dont need every answer, just need help with 3) and 7) mainly. Dont know how to g

Question

Dont need every answer, just need help with 3) and 7) mainly. Dont know how to generate the random numbers using excel. Also an explanation on how to attack each question would be very helpful! Like how to set up each problem so that I can finish it. Thank you!!

Life Contingencies Calculate A80, A80:101, and A80:51 using the given life table and i = .04 Calculate Var[Z], where Z is the present value random variable such that E[Z] = A80 Generate 30 sets of 20 random numbers each from a uniform distribution on [0,1] Compare qx values to the random numbers to simulate the timing of death benefit payments for whole life issued at age 80 Use the results of No. 4 and i = .04 to calculate the 30 values of Z Let S be the sum of the Z values in No. 5 Use a normal approximation to calculate the probability of a value of S as large as, or larger than, the one you obtained. Generate a set of 20 random numbers from a normal distribution with mean zero and standard deviation 0.003 Generate a set of 20 random interest rates i1, i2, elips , i20 from the formula l+in+1= eRn+1(l+in), where the Rn are the random numbers from No. 7 Use i0 = .045 Simulate the progress of a fund generated by the sale of 30 whole life policies sold at age 80 with $50,000 benefits. Use the interest rates from No. 8 and the times of death from No. 4 Assume that each premium is 50000 A80

Explanation / Answer

In excel, the formulas are:

3. for this one you can just do =rand() since this function pull from a uniform distribution 0,1

7.

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