In a service table, you are given the following: Number of actives at exact age 40 1,500 Number of voluntary terminations between exact ages 40 and 41 30 Number of involuntary terminations between exact ages 40 and 41 20 Number of disability retirements between exact ages 40 and 41 10 Number of deaths between exact ages 40 and 41 12 All decrements are uniform over the year of age 40 to 41. q = rate of mortality at age 40 in the associated single decrement table.In what range is q?
A)Less than 0.00815
B)0.00815 but less than 0.00817
C)0.00817 but less than 0.00819
D)0.00819 but less than 0.00821
E)0.00821 or more

Question

Quizplus · Accepted Answer

To find the rate of mortality (q) at age 40 in the associated single decrement table, we first calculate the total number of people exposed to risk of death, which is the initial population minus half the sum of all decrements (since decrements are uniform over the year). The total decrements are 30 (voluntary terminations) + 20 (involuntary terminations) + 10 (disability retirements) + 12 (deaths) = 72. Half of this is 36, so the number exposed to risk is 1500 - 36 = 1464. The number of deaths is 12, so q = 12 / 1464 = 0.008196721, which falls in the range of 0.00815 but less than 0.00817.

In a Service Table, You Are Given the Following: Number