IAI Actuarial Core Principles · Risk Modelling and Survival Analysis · Estimation procedures for lifetime distributions
In a study of policyholder lifetimes, a life is observed from age 40 until the study ends at age 52, and is still alive at that point. Which description of this observation is correct?
The observation is right censored at age 52, because the life is alive when the study ends and we only know that its lifetime is greater than 52, not the exact age at death.
- ARight censored at age 52Correct
- BLeft censored at age 40
- CLeft truncated at age 52
- DInterval censored between ages 40 and 52
- Right truncated at age 52
Explanation
The life is still alive when observation stops, so we only know the lifetime exceeds 52. That is the definition of right censoring. Truncation concerns whether a life enters the sample at all, which is not the case here.
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