- A branch of statistics used in engineering, economics, and sociology that deals with death or failure in mechanical systems. Survival analysis, also known as "reliability theory" and "reliability analysis" in engineering, and as "duration modelling" in economics, is used to determine questions of how likely someone or something will survive to a certain time. A life insurance company may use survival analysis to determine insurance premiums, whereas a manufacturer may use reliability analysis to determine how long a product may last and by extension how long to offer warranty services.
reliability theory, reliability analysis, duration modelling, life-expectancy data, duration analysis
Related Terms and Acronyms
- Actuarial Table — Definition,
- A table used in actuarial science that outlines the statistical probability that an individual of a specific age and sex will die within a year.
- Actuary — Definition,
- An individual who assesses the mechanisms, mathematics and complexities of risk and uncertainty.
- Insurance Score — Definition,
- A score used by those in the insurance industry to determine how likely a claim will need to be paid out for an individual or entity.
- Morbidity Rate — Definition,
- A measurement of how prevalent a medical condition or disease is.
- Policy Illustration — Definition,
- An outline of how a policy will perform under various conditions over a period of time.
- Selection Bias — Definition,
- A statistical error made when non-random data is added into a dataset.
- Self-Selection Bias — Definition,
- A selection bias that occurs when individuals join a sample group voluntarily.
- Ultimate Mortality Table — Definition,
- A mortality table that does not include information from people who have been approved for life insurance recently.
- Underlying Mortality Assumption — Definition,
- A measurement of death rates that is used to estimate pension obligations and insurance premiums.
- Useful Life — Definition,
- The number of years depreciable business property is expected to be productive and in use.
- Wear and Tear Exclusion — Definition,
- A provision that absolves an insurer from paying for damages resulting from an asset's normal wear and tear.
- Yearly Probability of Dying — Definition,
- The likelihood that an individual of a certain age and gender will die within a year.
- Yearly Probability of Living — Definition,
- The likelihood that an individual of a certain age and gender will still be alive after a year has passed.