Principles of Actuarial Modeling
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Lifetime Distributions

Worked Example

You are given the following data in relation to an investigation of a new drug. 20 rats are tested and observed over a period of 30 days. Derive the Kaplan-Meier estimate of the hazard function.

Day Event Day Event
4 Rat 4 dies 21 Rat 10 dies
5 Rat 13 dies 24 Rat 8 freed by animal rights activists
7 Rat 7 escapes 25 Rat 5 dies
12 Rat 1 killed by other rats 26 Rat 12 accidentally freed by journalist
17 Rats 6 and 9 die 30 Investigation closes. Remaining rats party!

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