IAI Actuarial Core Principles · Risk Modelling and Survival Analysis · Estimation procedures for lifetime distributions
In a Nelson-Aalen calculation, a life is censored at time 5 and a death occurs at time 5 for another life. By the standard convention, how is the risk set at time 5 treated?
The life censored at time 5 stays in the risk set at time 5. The convention treats censoring as occurring just after deaths at the same time, so the person was still at risk when the death happened, and the risk set is not reduced.
- AThe life censored at time 5 is included in the risk set at time 5Correct
- BThe censored life is removed before time 5
- CThe censored life is counted as a death
- DThe risk set is halved
- Censored lives never enter any risk set
Explanation
The standard convention is that a life censored at the same time as a death is assumed to be censored just after the death, so it is in the risk set at that time. Removing it would overstate the hazard increment.
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