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How do the assumptions work for part c of question 1 of tut 3 work ? also UDD vs UDB?

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asked Mar 15 in BUS 3018F - Models by Gareth (130 points)

The choices are:

A: policy anniversaries are uniformly distributed over the calendar year. 

B: birthdays are uniformly distributed over the policy year. 

C: birthdays are uniformly distributed over the calendar year.

1 Answer

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answered Mar 19 by farnabyg (140 points)

The aim is to establish which, if any of these assumptions are required in determining the average age of lives in the rate interval


The first is concerned with whether the location of the policy anniversary within a calendar year is of significance. 


The second is concerned with whether the location of birthdays within a policy year are of significance.


The third is concerned with whether the location of birthdays within a calendar year are of significance.

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