Will Durant
01-29-2008, 10:21 PM
I'm reading this paper and several of the equations make no sense to me; perhaps somebody from insurance can educate me.
Modified parabolic model qs = a + b sgn(delta) delta k + c ^ [(CR(t-1)-CR(t))^j]
New York State Law 126 model qs = a + b sgn(delta) delta k – c[(AV-CSV)/AV]
where delta = market rate - crediting rate - surrender charges, and k and b are indicated to be coefficients
why would you write these equations this way? isn't k a redundant constant that can be absorbed into the b coefficient?
Modified parabolic model qs = a + b sgn(delta) delta k + c ^ [(CR(t-1)-CR(t))^j]
New York State Law 126 model qs = a + b sgn(delta) delta k – c[(AV-CSV)/AV]
where delta = market rate - crediting rate - surrender charges, and k and b are indicated to be coefficients
why would you write these equations this way? isn't k a redundant constant that can be absorbed into the b coefficient?