Final Answer:
The statement 'Mortality Tables indicate the average number of individuals from a given group who will die in a given year' is a) True because mortality tables provide a statistical representation of the average number of individuals from a given group who are expected to die in a given year.
Step-by-step explanation:
Mortality tables indeed indicate the average number of individuals from a given group who will die in a given year. These tables are statistical tools used by actuaries and insurance professionals to estimate and predict the mortality rates of a specific population. The primary purpose is to assist in the calculation of life insurance premiums, annuities, and other financial products that involve life expectancy.
In these tables, mortality rates are often expressed as qx, representing the probability that a person aged x will die before reaching age x+1. To calculate life expectancy, the tables consider factors such as age, gender, and other demographic variables. Actuaries use complex mathematical models to analyze historical mortality data and project future trends. Mortality tables are crucial for insurers to make informed decisions about pricing and risk management, ensuring that their financial products remain viable and sustainable over time.
By providing a comprehensive overview of mortality patterns, these tables serve as a fundamental tool in the insurance and actuarial industries. They enable professionals to assess and quantify the risk associated with providing coverage to different demographic groups, allowing for the creation of fair and accurate insurance policies. Therefore, the statement that mortality tables indicate the average number of individuals from a given group who will die in a given year is indeed true, as these tables play a pivotal role in shaping the financial landscape of the insurance industry.