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Its the important key points of Life Contingencies are: Curtate Future Lifetime Random Variable, Greatest Integer Function, Smallest Integer Function, Nearest Integer, Smallest Integer, Curtate Future Lifetime, Greatest Integer, Future Years Survived, Future Birthdays, Opportunity to Celebrate
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Chapter 3: Survival Distributions and Life Tables
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3.4 Curtate Future Lifetime random variable,
x
Symbols:
the greatest integer function =round # down to the nearest integer
the smallest integer function =gives the smallest integer that is not
less than #
x
) = the curtate-future-lifetime of (
x
= the greatest integer in
x
= number of future years survived by (
x
) prior to death
= number of future birthdays (
x
) will have the
opportunity to celebrate
Notation:
)
(
)
(
x
T
x
K
=
= the greatest integer in T(
x
Example: 1)
( )
T x
=
( )
3
T x
=
Chapter 3: Survival Distributions and Life Tables
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Example
: Suppose a person was born on Jan 1, 1920 and
passed away on Aug 31, 2000. How old was this person atdeath? T(x)
K(x)
) ( ) ( ) ( x T x T x T
<
≤
Thus,
x
k
k
x
k
, for
k
The probability function of
x
x
k
k
x
k
k
x
k
k+
q
x
k
q
x
k
p
x
k+
p
x
k
p
x
q
x
+k
k|
q
x
Chapter 3: Survival Distributions and Life Tables
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Example
If
( )
1
100
x
s x
=
−
for 0
x
100, what is the probability that
= 20 for (18)? Example: Consider DeMoivre’s Law and find the p.m.f. and CDF of K
x
Chapter 3: Survival Distributions and Life Tables
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Example
: Consider the CDF
What is the probability that a newborn lives at least 25complete years?