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Flashcards in Actuarial Notation Deck (5):
1

Define Tx

Tx is the future lifetime of a person aged x.

T is shortening of T0
 

2

Define ω

ω is the Limiting age of a person (max age person can reach – usually 100 – 120 in models)

3

Define Fx(t) - tqx

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

 Define Sx(t) - tpx

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

Define μx

μx is the force of mortality at age x