Parametric Survival Models, Life Tables, and Their Relationships

Free SOA Exam FAM (Fundamentals of Actuarial Mathematics) lesson in Mortality Models. 22 min read, ~3,270 words.

Survival function, unconditional from birth;,. Force of mortality, the master function that determines the entire model. Recovery:, exponentiate the negative integral to get survival. Conditional survival:, conditional on reaching age. Four parametric models: De Moivre (uniform), constant force (exponential), Gompertz ( ), Makeham ( ). Life table is a discretization...

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