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The table below is an extract from a multiple decrement table that is currently used to model the deaths and withdrawals of employees working
The table below is an extract from a multiple decrement table that is currently used to model the deaths and withdrawals of employees working for a large company in the hospitality industry. No decrements occur other than by death or withdrawal. Number of employees (al), 50,000 Number of Number of Age (x) deaths withdrawals (ad) (ad) 1,500 47 390 Recent experience has resulted in an estimate that, at all ages: the annual independent force of mortality for employees is now 60% of that implied by the q, rates in the ELT15 (Females) table. the annual independent probability of withdrawal for employees is now 250% of that used to construct the above table. (i) Calculate, showing all working, the revised independent forces of mortality and withdrawal, each to six significant figures, for age 47. You should state any assumptions that you make. [7] Construct the revised multiple decrement table, showing your results to two decimal places. (ii) [S] Identify any concerns with the use of this revised multiple decrement table to model the future deaths and withdrawals of employees of the company. [3] (iii)
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