You are reading a page from Calculus and Probability for Actuarial Students, Alfred Henry (1927)
Part of the American Term Life Insurance History Project
Term Life Insurance
CHAPTER VI
FINITE DIFFERENCES. INVERSE INTERPOLATION
42    FINITE DIFFERENCES
A further approximation is obtained by taking second differences into account and writing x, in place of x in the equation, thus giving
x2—    f(x)—f(0)    ~).
Al(0) + (x1—1) A (0)
When third differences are taken into account x2 is written for x, giving
    f(x)-f(0)    (3).
x3 _ °f(0)+(x—1)02.1(0)+(x2—1)(x2—2)(0)
These processes can be repeated until the desired degree of approximation is reached. The method has the disadvantage of being somewhat laborious. On the other hand it has the advantage that an error of calculation at an early stage does not vitiate the result, being rectified by the further approximations.


INVERSE INTERPOLATION    43
f (x) = 2.33333 = 2.30103 + .02119x — •00099 x (x 1)
2
+'00010x(v—1)(x—2)
6
Or, by reduction,
x3 -32.7x2+1303.1x—1938=0.
Whence, solving the cubic,
x =1.5443.
Since the initial value of x is 200 and the unit of measurement is 10, the result of the calculation is to give 215'443 as the required value of x.