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Life Tables Reading

0 votes
asked May 18, 2018 in BUS 3018F - Models by anonymous


Suppose one is given a life table like the ones I've attached below. I'm confused because the last column states age x+2. So if for example I want to find l(50), do I look at l(48) ? I'm struggling to interpret the x+2 part. Say if I'm looking at l(50) from the table, is that actually l(48)? Or rather should I look at it as; if I want to find l(50) I should look in the table at l(52)?


2 Answers

0 votes
answered May 21, 2018 by Vegan (720 points)

For this course, I recommend that you focus on the last 2 columns. If you are looking for l(50) you look for the age 50 in the very last column and read off the value in the same row. Treat \(x+2\)  as a single variable (call it y if you want) and the values of \(l_{x+2}\) will correspond. You do not have to look at the 2 ages before or after the value you want.

0 votes
answered May 21, 2018 by Pandy (2,850 points)

The [x] on the left refers to select lives. Basically, if you've just underwritten a life they're more likely to be in good health, and this is reflected in the life tables. As time goes on, that underwriting effect wears off and the life returns to "normal" mortality. In this table, it is assumed that the underwriting effect wears off after 2 years, hence there is no \(l_{[x]+2}\) column because \(l_{[x]+2}=l_{x+2}\).

If you're looking for \(l_{50}\), look for 50 in the \(x+2\) column and use the \(l_{x+2}\) figure.