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In the lecture notes, we discussed uniform distribution of decrements (UDD) between inte- ger ages. It is important to understand that the UDD assumption
In the lecture notes, we discussed uniform distribution of decrements (UDD) between inte- ger ages. It is important to understand that the UDD assumption is made with respect to the original full decre- ment model. In other words, we assumed uniform exits via all decrements simultaneously between integer ages: P=t-p, 0t 1, integer x, for all j = 1,2,..., m. This assumption-UDD in the multiple decrement model-leads to 0j = Hatt 1-t-(1-p0) Now, assume UDD in all the hypothetical single decrement models and show that (1) the forces of transition are instead given by - S P 00 0j Hatt *G) qa 1-t.q.6), (2) for m = 3 (a triple decrement model) we have 1 = q 20) (1 - 570) 2/ 0
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