Question 16

The tables track a group of people from the year they were born until they all die.

Mortality tables do not track a group of people from birth until all have died; rather, they provide statistical estimates based on historical data and probabilities regarding mortality at various ages.

A) the numbers in the tables are based on past experience.

This statement is true. Mortality tables are constructed using historical death data, reflecting the experiences of populations over time, which helps in understanding and predicting future mortality rates.

B) the theory of probability is applied to numbers in the tables.

This statement is also true. Mortality tables utilize probability theory to assess the likelihood of death at various ages, allowing actuaries to make informed predictions about mortality.

C) the tables track a group of people from the year they were born until they all die.

This statement is incorrect. Mortality tables do not follow an individual group from birth to death but instead summarize the probabilities of death at different ages based on statistical data.

D) actuaries use the tables to predict the number of deaths among a given number of people at a given age.

This statement is true. Actuaries rely on mortality tables to estimate the number of deaths expected in a specific age group, allowing for risk assessment and financial planning in insurance and pension sectors.

Conclusion

The correct answer is C because mortality tables do not track individuals throughout their lifetime; instead, they provide statistical insights based on aggregated data. Options A, B, and D accurately describe the purpose and application of mortality tables, while C misrepresents their function, making it the only false statement among the choices.