Question 61

Mortality tables do not track a group of people from the year they were born until they all die.

Mortality tables primarily present statistical data regarding mortality rates within specific age groups rather than following individuals throughout their entire lives.

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

This statement is correct as mortality tables are constructed using historical data regarding death rates and life expectancies. Actuaries analyze demographic data to create these tables, ensuring that the numbers reflect actual past experiences of populations.

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

This statement is also accurate. The construction of mortality tables relies heavily on the principles of probability to estimate the likelihood of death at various ages, allowing for informed predictions about future mortality rates.

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 track individual cohorts throughout their lives but instead provide a snapshot of mortality rates across different age groups at a given time, making it a general statistical representation rather than a longitudinal study of specific individuals.

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 utilize mortality tables to estimate the number of deaths expected in a population at specific ages, helping them calculate life insurance premiums and assess risk.

Conclusion

The correct answer, C, highlights a fundamental misconception about mortality tables, as they do not follow individuals over their lifetimes but rather provide aggregated mortality data. All other options accurately describe characteristics and uses of mortality tables, emphasizing the reliance on past data and statistical methods in their formulation.