Hi, I am currently working on my first model and a bit confused with application of mortality data I have got and I would really appreciate your advice.
I have got data from the register and it is a cumulative probability of dying for 10 years. My model has cycle length of 3 month and I was trying to transform the data using the formula: rate = - ln(1-p)/t and p=1- exp (-rt).
I understood that still it gives the cumulative number for each period of time (number of patients dead at the end of each 3 month ) and it is not adding up at the end of course. The other thing is that the patients die less in the beginning and more at the end.
As I understood it, for Markov model requires probability of dying each 3rd month to the end of time horizon.
So, I calculated the difference in % of dead people for the end of each year (year 2 - year 1) and then from this difference calculated first 3 month probability and now assume that this probability is for the whole year.
For example: dead year one - 0,6 %, dead year 2 - 1,0 %. So, 1,0-0,6 =0,4
rate = -LN(1-0,004)/4= 0,001002005
probability = 1- (EXP (-0,001002005*1)=0,0010015
4 is because it is 4 3-month period in year and 1 because I need just for one.
And now I assume this probability is for the whole year.
How do you think am I completely wrong? is there any other smarter way?
QUESTION 2. How give this probability a distribution in the parameter shit in excel. As I dont have ant numbers, but just the probability of dying each 3 month, I think I cannot use Beta and of course not Dirichlet... I read that logit is possible but cannot find formula for excel. Maybe some of you know.
Thank you so much for your assistance and help!
Best regards,
Katrine