Actuarial Notation Flashcards
1
Q
Define Tx
A
- Tx* is the future lifetime of a person aged x.
- T* is shortening of T0
2
Q
Define ω
A
ω is the** Limiting age of a person** (max age person can reach – usually 100 – 120 in models)
3
Q
Define Fx(t) - tqx
A
Fx(t) is the distribution function of Tx
In actuarial notation, Fx(t) is tqx
Fx(t) = P[Tx ≤ t]
This represents the probability of death for a life aged x by age x + t.
Example. The probability of a 40 year-old dying in the next 20 years is denoted by F40(20) = P[T40 ≤ 20].
4
Q
Define Sx(t) - tpx
A
Sx(t) is the survival function of Tx
In actuarial notation Sx(t) is tpx
- Sx(t)*, represents the probability that a life, aged x, survives for t years:
- Sx(t) = P[Tx > t]*
Example. The probability of a 40 year-old surviving for the next 20 years is denoted by S40(20) = P[T40 > 20].
5
Q
Define μx
A
μx is the force of mortality at age x