Discrete-time survival analysis under ranked set sampling: an application to Turkish motor insurance data

Abstract

ABSTRACTSurvival models with continuous-time data are still superior methods of survival analysis. However when the survival data is discrete, taking it as continuous leads the researchers to incorrect results and interpretations. The discrete-time survival model has some advantages in applications such as it can be used for non-proportional hazards, time-varying covariates and tied observations. However, it has a disadvantage about the reconstruction of the survival data and working with big data sets. Actuaries are often rely on complex and big data whereas they have to be quick and efficient for short period analysis. Using the mass always creates inefficient processes and consumes time. Therefore sampling design becomes more and more important in order to get reliable results. In this study, we take into account sampling methods in discrete-time survival model using a real data set on motor insurance. To see the efficiency of the proposed methodology we conducted a simulation study.