Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Need help with an actuarial question please An actuary produces a new standard mortality table for a country using a Poisson model to obtain estimates

Need help with an actuarial question please

An actuary produces a new standard mortality table for a country using a Poisson model to obtain estimates for the force of mortality and then graduates these model outputs by reference to a parametric formula based on Gompertz Law to produce the final table.

(a) What are the advantages and disadvantages of this method of graduation in these circumstances?

(b) The quality of the graduation is examined using a series of statistical tests with each test completed seprately for ages 0-18, 19-45, 46-65 and 66-110. The table below shows for each test whether the relevant null hypothesis was accepted or rejected at the 95% significance level.

Test Age 0-18 Age 19-44 Age46-65 Age66-110
Chi squared Accept Accept Reject Accept
Standard deviation Reject Accept Accept Accept
Signs Accept Accept Reject Reject
Grouping of Signs Accept Accept Accept Reject

What does this set of test results tell you about the graduation?

(c) What adjustments would you recommend to the method of graduation in light of your answer to (b) above?

Thank you

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Introductory Algebra Concepts And Graphs

Authors: Charles P McKeague

1st Edition

1630980110, 9781630980115

More Books

Students also viewed these Mathematics questions