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2013 September 9 (ii) CT4

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Priyanka Malhotra

Active Member
Hi, could someone please help me understand why have we reduced the degree of freedom for the choice of standard table? I think since it not derived from experience should we not take degree of freedom = count of ages for which test is being conducted? Thanks in advance!
 
Hi Priyanka

I think you may be getting mixed up between the two types of goodness-of-fit tests:

1. Testing whether a particular mortality experience is consistent with a standard table.

In this test the number of degrees of freedom is equal to the number of age groups.

2. Testing whether a graduation appears consistent with the mortality experience.

In this case, we have to reduce the number of degrees of freedom based on the method of conducting the graduation. When using a standard table, we subtract something for the choice of table and also subtract the number of parameters used in the function to link the standard table rates to the graduated rates.

Hope this helps!

Andy
 
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