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IAI Actuarial Core Principles · Risk Modelling and Survival Analysis · Transition intensities dependent on age (exact or census)

A mortality investigation uses the exact age method with a rate interval from age x to x+1. Which of the following statements about the central exposed to risk is correct?

Under the exact age method each life contributes the actual time observed within the age band, starting at the later of age x and entry and ending at the earlier of age x+1, exit or death. The death-as-full-year idea belongs to initial exposure.

  1. AIt is the same as the initial exposure whenever deaths occur
  2. BIt is only calculated from the census dates and cannot be found from exact dates
  3. CIt equals the initial exposed to risk plus half the deaths
  4. DIt counts each life from the later of age x and entry into observation until the earlier of age x+1, exit or deathCorrect
  5. It counts a life who dies during the year as exposed for the full year

Explanation

With exact dates, each life contributes the precise time spent within the age interval, from entry or age x to exit, death or age x+1. A death counts only up to the date of death for central exposure, so the full-year option is wrong.

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