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View Full Version : Dallas and Atkinson: Table 7.6.1


Roto
10-13-2007, 12:03 PM
In order to calculate ReinsDB_pu, table is clearly utilizing the following:
ReinsDB_pu(t) = ReinsPct(t) * Naar_pu(t) (7.4.4)
where Naar_pu(t) is defined by,
Naar_pu(t) = DB_pu(t) - SolvRes_pu(t) (7.4.1)

e.g. for t = 1,

Naap_pu(1) = 1000 - 1.91218 = 998.09 [SolvRes_pu(1) = 1.91218 pulled from table 6.7.2]

ReinsDB_pu(1) = 25% * 998.09 = 249.52

But table 7.6.1 labels 998.09 as Naar_pu(t-1) or Naar_pu(0) for t = 1.

It would appear that this is a poor column header. In other words, Naar_pu(t-1) should be labeled Naap_pu(t) instead.

Is this a clear error, or am I missing something?