Hi there, I am having slight trouble about what it means for decrements to be uniformly distributed in the context of the following question: There are two modes of decrement for employees - death and withdrawal. Independent rate of mortality: 0.001 per year Independent rate of withdrawal: 0.1 per year The mortality decrement is uniformly distributed over the year of age in the associated single decrement table. 50% of the decrements due to withdrawals occur uniformly over the year of age and the balance occurs at year end. I have to find the probability a person aged 30 will die as an employee between aged 31 and 32. I am wondering if my calculations are correct. I am getting this probability to be 0.000879? Am I correct in thinking that the dependent rate of death in any year is 0.001*(1-0.5(.05)) ? Any help would be greatly appreciated.
This looks like an old exam question - it's subject 105, September 2001, Q7. So you can find the answer on the Institute's wesbite! It looks like you have the right formula for the dependent probability of death and the right answer!
