S
Salma
Member
Hello, can someone please help me out with this question?
i) is asking us to calculate the dependent rates of mortality, ill heath and withdrawal.
The question states that the INDEPENDENT rate of mortality is 110% AM92, hence we find mu_x by -ln(1-qx).
However, why dont we apply the same -ln(...) for ill health and withdrawal as those are independent too?
So why is mu_i (ill health) at age 55 not -ln(0.04) and under what circumstances would be calculate mu_i as -ln(0.04)?
i) is asking us to calculate the dependent rates of mortality, ill heath and withdrawal.
The question states that the INDEPENDENT rate of mortality is 110% AM92, hence we find mu_x by -ln(1-qx).
However, why dont we apply the same -ln(...) for ill health and withdrawal as those are independent too?
So why is mu_i (ill health) at age 55 not -ln(0.04) and under what circumstances would be calculate mu_i as -ln(0.04)?