Mortality tables are based on what mathematical activity? Each correct answer represents a complete solution.
Choose three.
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A. B. C. D.ABD.
Probability identifies the chances that a particular event will happen under certain circumstances.
The variables provided are based on information gathered in real life.
For situations with large numbers, a smaller set of participants are identified to represent the larger population.
This represents a sample of the population.
The points are mapped to identify their distribution.
Normal distribution refers to the theoretical plotting of points against the mathematical mean.
The result of these activities provides a reasonable predictability for the mortality of the subject.
Incorrect Answers: C: Impact is used to identify the magnitude of identified risks.
The risk leads to some type of loss.
However, instead of quantifying the loss as a dollar value, an impact assessment could use words such as Low, Medium, or High.
Hence it is not mathematical.
Mortality tables are statistical models used to predict the probability of death in a given population based on demographic and health factors. They are commonly used in the insurance industry to determine premium rates and to estimate future liabilities.
The construction of mortality tables is based on the analysis of large amounts of data on mortality rates and survival probabilities. In particular, mortality tables are based on the following mathematical activities:
Probabilities: Mortality tables use probabilities to estimate the likelihood of death at different ages and for different demographic groups. These probabilities are based on historical data on mortality rates and survival probabilities, as well as on assumptions about future trends.
Sampling: Mortality tables are constructed based on samples of data from the population of interest. The samples must be representative of the population and must be large enough to provide reliable estimates of mortality rates and survival probabilities.
Impact: Mortality tables also take into account the impact of various demographic and health factors on mortality rates. For example, factors such as gender, smoking status, and pre-existing medical conditions can significantly affect the likelihood of death.
In contrast, normal distributions are not typically used in the construction of mortality tables. Normal distributions assume that data is normally distributed, which is often not the case for mortality rates, which tend to follow a skewed distribution. Therefore, option A is not correct.
In summary, the correct answers are B, C, and D, as mortality tables are based on probabilities, sampling, and impact analysis.