Actuarial Outpost Illustrative Service Table
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#1
04-28-2009, 10:04 AM
 kota Member Join Date: Jan 2007 Posts: 35
Illustrative Service Table

Hello,

I've just noticed that there's a small table called Illustrative Service Table on the last page of MLC Table. What is it exactly? How to use it? any reference would be very appreciated.

Thanks
Kota
#2
04-28-2009, 10:36 AM
 its_me Member Join Date: Jan 2003 Location: AO Posts: 2,145

Its used for Multiple decrements.
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#3
04-28-2009, 11:00 AM
 Requiem Member Join Date: Jan 2008 Posts: 2,951

I never learned WTF it is, but it showed up on my exam. So learn it.
#4
04-28-2009, 12:52 PM
 nonactuarialactuary Member Non-Actuary Join Date: May 2008 Posts: 1,896

It's used for multiple decrements. It's nothing more than an illustrative life table had it been separated out by type of "death", recognizing that people can leave the population through other means than death. For instance, in an employee population, people can leave the population due to retirement. It was used in an extremely simple problem on the Fall 2008 exam. Somthing like:

Use the IST to find q_70^(r)

This is merely d_70^(r)/l_70, with both of these values directly available on the table. If you had ever used the IST before, the problem only took you 20 seconds to solve. The problem was that many people simply had never used the IST before. A lot of people were confused and didn't notice the question asked about the IST rather than the ILT. A good general exam taking tip is to familiarize yourself with all of the materials they give you on the exam. Print them out from the SOA website before even cracking open a study manual, and keep them with you for the entire time you study. Know the purpose of every column of the ILT, IST, and whatever else is given on the exam. This was a gimme question, but only if you knew what it meant.
#5
04-28-2009, 04:18 PM
 MissAtL Member SOA Join Date: Mar 2009 Location: Atlanta Studying for MFE College: Georgia State University Alum Posts: 169

Quote:
 Originally Posted by Requiem I never learned WTF it is, but it showed up on my exam. So learn it.
Agreed! I was pissed it showed up on the exam since I had never used it on a problem until that day. It was such a gimme problem, but I wasted so much time wondering why all l_x minus death due to all decrements didn't get you to l_x+1

Don't waste your time stupidly like I did!

*sigh*
#6
04-28-2009, 05:04 PM
 Divergence2 Member Join Date: Sep 2008 Studying for C/4 Posts: 90

Quote:
 Originally Posted by MissAtL I wasted so much time wondering why all l_x minus death due to all decrements didn't get you to l_x+1
Ummmmm but it does..
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#7
04-29-2009, 12:12 AM
 kota Member Join Date: Jan 2007 Posts: 35

Thank, jts5009, for explanation. I found a brief discussion on page 351 of Bowers, which is not in the reading. i wonder why Actex does not say a word on this table.

Kota
#8
04-29-2009, 12:29 AM
 Actuarialsuck Member Join Date: Sep 2007 Posts: 6,109

Because the table has never been used, IIRC, until the last exam. There were exam questions when they gave a you a part of that table (or something similar) and asked you to find the premium or something but they made no reference to the table itself.
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#9
04-29-2009, 01:35 PM
 MissAtL Member SOA Join Date: Mar 2009 Location: Atlanta Studying for MFE College: Georgia State University Alum Posts: 169

Quote:
 Originally Posted by Divergence2 Ummmmm but it does..
Haha, you're right! All I remember is that I spent a lot of uneccessary time figuring out that problem for some stupid reason. But of course, now that I know how to use it, that question won't show up on the May exam!
#10
04-29-2009, 03:32 PM
 wellmabt Member Join Date: Apr 2008 Posts: 411

Anyone know where this is discussed in the ASM manual or in the TIA seminar? And can you point me in the direction of practice problems from ASM or TIA that involve using the IST.