Fractional Age Assumption Based on Cubic Polynomial Interpolation. Issue 4 (20th April 2016)

• Record Type: Journal Article
• Authors: Li, Shilong; Zhao, Xia; Zhang, Jingxiao
• Is Part Of: Communications in statistics. Volume 45:Issue 4(2016)
• Page Start: 1173
• Page End: 1186
• Publication Date: 2016-04-20
• Subjects: Actuarial present value -- Cubic polynomial interpolation -- Force of mortality -- Fractional age assumption -- Survival function; Mathematics Subject Classification -- Primary 62P05 -- Secondary 65D05; Mathematical statistics -- Periodicals; Mathematical statistics -- Data processing -- Periodicals; Digital computer simulation -- Periodicals; 519.5
• DOI: 10.1080/03610918.2012.729635
• Languages: English
• ISSNs: 0361-0918

Abstract

Abstract : This article proposes a new fractional age assumption (FAA) based on the cubic polynomial interpolation (CPI) and applies it to estimate the mortality rate and related actuarial quantities. The validity of the method under CPI is proved theoretically and the valuable advantages of CPI assumption are discussed based on three different perspectives—utilized death information, property of mortality force, and optimality criterion. The results show that CPI assumption has distinct valuable superiority compared with other FAAs in references. Finally under CPI assumption we study the calculations of some important actuarial quantities in life contingencies.