Actuarial Outpost
 
Go Back   Actuarial Outpost > Exams - Please Limit Discussion to Exam-Related Topics > SoA/CAS Preliminary Exams > Short-Term Actuarial Math
FlashChat Actuarial Discussion Preliminary Exams CAS/SOA Exams Cyberchat Around the World Suggestions

DW Simpson Global Actuarial & Analytics Recruitment
Download our Actuarial Salary Survey
now with state-by-state salary information!


Short-Term Actuarial Math Old Exam C Forum

Reply
 
Thread Tools Search this Thread Display Modes
  #1  
Old 10-28-2009, 09:41 PM
badmaj5's Avatar
badmaj5 badmaj5 is offline
Member
CAS
 
Join Date: Sep 2005
Location: Chicago, IL
Posts: 454
Default Equilibrium Distribution and LER

The formula for the CDF of the equilibrium distribution would work out to be the same as the LER, correct? I could see that coming in handy if we were given some made up density and asked to compute the LER.
Reply With Quote
  #2  
Old 10-28-2009, 10:18 PM
volva yet's Avatar
volva yet volva yet is offline
Note Contributor
 
Join Date: Feb 2006
Location: Nomadic
Studying for GHC/DMAC
College: PSU '07
Favorite beer: Oskar Blues Old Chub Scotch Ale
Posts: 4,948
Default

Quote:
Originally Posted by badmaj5 View Post
The formula for the CDF of the equilibrium distribution would work out to be the same as the LER, correct? I could see that coming in handy if we were given some made up density and asked to compute the LER.
Isn't the LER always the following?

__________________
Exams
How to explain actuarial exams to someone else...

Good Einstein quote - "One had to cram all this stuff into one's mind for the examinations, whether one liked it or not. This coercion had such a deterring effect on me that, after I had passed the final examination, I found the consideration of any scientific problems distasteful to me for an entire year."
Reply With Quote
  #3  
Old 10-28-2009, 10:26 PM
badmaj5's Avatar
badmaj5 badmaj5 is offline
Member
CAS
 
Join Date: Sep 2005
Location: Chicago, IL
Posts: 454
Default

LER(d) = E[X /\ d]/E[X].
Equilibrium Dist = [integral from 0 to d of S(X)]/E[X]
Reply With Quote
  #4  
Old 10-29-2009, 01:52 AM
chicken_po_boy's Avatar
chicken_po_boy chicken_po_boy is offline
Member
CAS
 
Join Date: Nov 2008
Location: 401 Poydras New Orleans, LA 70130
Studying for Nothing Ever Again
College: been there, done that
Favorite beer: You gonna finish that?
Posts: 2,102
Default

Is the term "equalibrium distribution" used in Loss Models? I'm using ASM and I don't remember it being referred to by that name.
Reply With Quote
  #5  
Old 10-29-2009, 02:04 AM
Clam Chowdah's Avatar
Clam Chowdah Clam Chowdah is offline
Member
CAS
 
Join Date: Aug 2008
Location: Derry, ME
Studying for CAS 5
Favorite beer: Pick Pole Pale Ale
Posts: 1,408
Default

I wouldn't worry about that one. Is it on the SOA 289?
Reply With Quote
  #6  
Old 10-29-2009, 08:10 AM
Abraham Weishaus Abraham Weishaus is offline
Member
SOA AAA
 
Join Date: Oct 2001
Posts: 7,250
Default

Quote:
Originally Posted by chicken_po_boy View Post
Is the term "equalibrium distribution" used in Loss Models? I'm using ASM and I don't remember it being referred to by that name.
It's in both. But yes, not too important.
Reply With Quote
  #7  
Old 10-29-2009, 11:06 AM
volva yet's Avatar
volva yet volva yet is offline
Note Contributor
 
Join Date: Feb 2006
Location: Nomadic
Studying for GHC/DMAC
College: PSU '07
Favorite beer: Oskar Blues Old Chub Scotch Ale
Posts: 4,948
Default

Quote:
Originally Posted by badmaj5 View Post
LER(d) = E[X /\ d]/E[X].
Equilibrium Dist = [integral from 0 to d of S(X)]/E[X]
Equilibrium Dist = LER? Hmm!
__________________
Exams
How to explain actuarial exams to someone else...

Good Einstein quote - "One had to cram all this stuff into one's mind for the examinations, whether one liked it or not. This coercion had such a deterring effect on me that, after I had passed the final examination, I found the consideration of any scientific problems distasteful to me for an entire year."
Reply With Quote
  #8  
Old 10-29-2009, 12:20 PM
badmaj5's Avatar
badmaj5 badmaj5 is offline
Member
CAS
 
Join Date: Sep 2005
Location: Chicago, IL
Posts: 454
Default

I really don't see any reason why that SHOULDN'T be the case...
Reply With Quote
  #9  
Old 03-15-2019, 05:04 PM
gauchodelpaso's Avatar
gauchodelpaso gauchodelpaso is offline
Member
SOA
 
Join Date: Feb 2012
College: Eastern Michigan U
Posts: 149
Default

just by looking at a Lee diagram, I can see they are not the same thing... LER is the ratio of 2 areas, fe is the ratio of a segment to the total area, and it's a proper distribution that adds up to 1....
__________________

German
______________
Prelims: 1/P - 2/FM - 3F/MFE - LTAM - STAM
VEE: Economics - Corporate Finance - Applied Statistics
Reply With Quote
Reply

Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off


All times are GMT -4. The time now is 04:10 AM.


Powered by vBulletin®
Copyright ©2000 - 2019, Jelsoft Enterprises Ltd.
*PLEASE NOTE: Posts are not checked for accuracy, and do not
represent the views of the Actuarial Outpost or its sponsors.
Page generated in 0.18804 seconds with 11 queries