Premium Bases Mortality And Morbidity Rates MCQs

Welcome to our comprehensive collection of Multiple Choice Questions (MCQs) on Premium Bases Mortality And Morbidity Rates, a fundamental topic in the field of IC 92 Actuarial Aspects of Product Development. Whether you're preparing for competitive exams, honing your problem-solving skills, or simply looking to enhance your abilities in this field, our Premium Bases Mortality And Morbidity Rates MCQs are designed to help you grasp the core concepts and excel in solving problems.

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Q51.
What is the primary requirement for data used in experience analysis?

a.

Large volume of data

b.

Stable and consistent data

c.

Diverse sources of data

d.

Long time intervals for data collection

Discuss
Answer: (b).Stable and consistent data Explanation:The primary requirement for data used in experience analysis is that it should be stable and consistent, meaning it should be of similar form, from similar sources, and grouped based on the same criteria, and should also be reliable.
Q52.
Why is consistency important in data for experience analysis?

a.

It ensures statistical significance

b.

It allows for comparison across different analyses

c.

It minimizes errors and biases in the analysis

d.

All of the above

Discuss
Answer: (d).All of the above Explanation:Consistency in data for experience analysis is important because it ensures statistical significance, allows for comparison across different analyses, and minimizes errors and biases in the analysis.
Q53.
What is a potential problem with grouping data into too many groups?

a.

It reduces statistical significance

b.

It increases errors in the analysis

c.

It makes data interpretation more difficult

d.

It may lead to incorrect conclusions due to small sample sizes

Discuss
Answer: (d).It may lead to incorrect conclusions due to small sample sizes Explanation:Grouping data into too many groups may lead to incorrect conclusions due to small sample sizes, as more groups mean less data in each group, reducing statistical significance and increasing the likelihood of errors in the analysis.
Q54.
What should remain stable over time to ensure the validity of grouped data in experience analysis?

a.

The size of each group

b.

The risk characteristics of each group

c.

The time period for data collection

d.

The sources of data for each group

Discuss
Answer: (b).The risk characteristics of each group Explanation:The risk characteristics of each group should remain stable over time to ensure the validity of grouped data in experience analysis. Changes in risk characteristics within groups can lead to incorrect conclusions about changes in experience.
Q55.
What is an upper limit on the time interval for conducting mortality investigations?

a.

One year

b.

Two years

c.

Three years

d.

Four years

Discuss
Answer: (d).Four years Explanation:An upper limit on the time interval for conducting mortality investigations is typically four years, as investigations aim to analyze recent experience rather than an average of recent and ancient data.
Q56.
What is the first step in deriving assumptions for mortality or morbidity studies?

a.

Calculation of expected experience

b.

Grouping of data

c.

Collection of data

d.

Calculation of actual experience

Discuss
Answer: (c).Collection of data Explanation:The first step in deriving assumptions for mortality or morbidity studies is the collection of data from various sources within the company.
Q57.
Why is the time period important in collecting data for mortality or morbidity studies?

a.

To ensure seasonal influences are accounted for

b.

To ensure a sufficient amount of data is available

c.

To prevent biases in the analysis

d.

To reduce the impact of cultural attitudes

Discuss
Answer: (b).To ensure a sufficient amount of data is available Explanation:The time period is important in collecting data for mortality or morbidity studies to ensure a sufficient amount of data is available for analysis, and to minimize the impact of seasonal influences and biases.
Q58.
What is the recommended time interval for mortality analysis?

a.

At most five years

b.

At least ten years

c.

One year

d.

Three to four years

Discuss
Answer: (d).Three to four years Explanation:The recommended time interval for mortality analysis is typically three to four years, as this allows for recent data to be analyzed while ensuring a sufficient amount of data for statistical significance.
Q59.
Which source is considered the best for mortality or morbidity data?

a.

Historical records

b.

Actuarial reports

c.

Policy administration system

d.

External research studies

Discuss
Answer: (c).Policy administration system Explanation:The policy administration system is considered the best source for mortality or morbidity data as it contains actual policy data maintained by the company, which is crucial for accurate analysis.
Q60.
Why should the period of investigation not be too large for mortality analysis?

a.

To account for seasonal influences

b.

To minimize the impact of cultural attitudes

c.

To ensure a timely reaction to changes in mortality levels

d.

To prevent biases in the analysis

Discuss
Answer: (c).To ensure a timely reaction to changes in mortality levels Explanation:The period of investigation should not be too large for mortality analysis to ensure a timely reaction to changes in mortality levels, particularly for product pricing considerations.
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