You are given the following about 100 insurance policies in a study of time to policy surrender: (i) The study was designed in such a way that for every policy that was surrendered, a new policy was added, meaning that the risk set, r, , is always equal to 100. (ii) Policies are surrendered only at the end of a policy year. (iii) The number of policies surrendered at the end of each policy year was observed to be: 1 at the end of the 1" policy year 2 at the end of the 2nd policy year 3 at the end of the 3rd policy year n at the end of the n" policy year (iv) The Nelson-Aalen empirical estimate of the cumulative distribution function at time n, F(n), is 0.542. What is the value of n?

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(A)
0.22
(B)
0.28
(C)
0.33
(D)
0.40
(E)
0.46
You are given the following about 100 insurance policies in a study of time to policy
surrender:
(i)
The study was designed in such a way that for every policy that was surrendered, a
new policy was added, meaning that the risk set, r,, is always equal to 100.
(ii)
Policies are surrendered only at the end of a policy year.
(ii)
The number of policies surrendered at the end of each policy year was observed to be:
1 at the end of the 1ª policy year
2 at the end of the 2nd policy year
3 at the end of the 3d policy year
n at the end of the n" policy year
(iv)
The Nelson-Aalen empirical estimate of the cumulative distribution function at time n,
F(n) , is 0.542.
What is the value of n?
Transcribed Image Text:(A) 0.22 (B) 0.28 (C) 0.33 (D) 0.40 (E) 0.46 You are given the following about 100 insurance policies in a study of time to policy surrender: (i) The study was designed in such a way that for every policy that was surrendered, a new policy was added, meaning that the risk set, r,, is always equal to 100. (ii) Policies are surrendered only at the end of a policy year. (ii) The number of policies surrendered at the end of each policy year was observed to be: 1 at the end of the 1ª policy year 2 at the end of the 2nd policy year 3 at the end of the 3d policy year n at the end of the n" policy year (iv) The Nelson-Aalen empirical estimate of the cumulative distribution function at time n, F(n) , is 0.542. What is the value of n?
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