April 2008 UK - Q5 (Exposed to Risk)

For the sake of example, if we assume that the calender year of observation is 1st Jan 2005 to 31st Jan 2005, and current date is 1st Jan 2006, someone born in 2004 and married sometime in 2005 (thus aged x on a calender year basis) could be aged either 0 (x-1) or 1 (x) 'last birthday' (assuming uniform distribution).

Then, shouldn't Px*(t) = 1/2 * [Px-1(t) + Px(t)]?

 

Oxymoron

This question is non-examinable following changes to the CT4 syllabus since 2008. You don't need to study either calendar year or policy year rate intervals - so don't worry about the details here.

See the "sticky" thread at the top of the forum for details of past questions which are now off-syllabus (including this one).

Mark.

 

Oh silly me! Thank you so much!