Multiple life functions and multiple decrement models

• Main Authors: Manning, Patricia Maria Q., Villar, Katerina W.
• Format: text
• Language: English
• Published: Animo Repository 1992
• Subjects: Insurance > Mathematics; Distributions (Probability theory); Mathematical models; Functions
• Online Access: https://animorepository.dlsu.edu.ph/etd_bachelors/15977
• Institution: De La Salle University

This paper is an expository on two topics in the book, Actuarial Mathematics by Bowers et al, namely, multiple life functions and multiple decrement models. Multiple life functions deal with the development of theories for the analysis of financial benefits contingent on the time and order of death involving several lives but in this paper it is limited to two lives only. Multiple decrement models on the other hand, deal with building a theory which will study the distribution of two random variables which are time-until-termination from a given status and the cause of termination.These two topics are explained in this study in a manner that could be easily understood. Derivations of formulas with their respective interpretations and exercises are given. However, this paper does not discuss variances and covariances which are subtopics included in the book of Bowers, et al.