Actuarial Outpost
 
Go Back   Actuarial Outpost > Exams - Please Limit Discussion to Exam-Related Topics > SoA/CAS Preliminary Exams > Exam 4/C - Construction and Evaluation of Actuarial Models
FlashChat Actuarial Discussion Preliminary Exams CAS/SOA Exams Cyberchat Around the World Suggestions

DW Simpson Global Actuarial & Analytcs Recruitment
Download our 2017 Actuarial Salary Survey
now with state-by-state salary information!


Reply
 
Thread Tools Search this Thread Display Modes
  #1  
Old 05-18-2018, 02:09 PM
jenniferlsq jenniferlsq is offline
SOA
 
Join Date: May 2018
College: Bucknell University
Posts: 1
Default ASM Exam C Manual Exercise 11.15 [4-F01:36]

For this question, can someone help me understand how is the average number of losses per year = 2,000,000/23,759?

This does not make sense to me because 2,000,000 is the aggregate loss, but 23,759 is average payment with policy limit of 1,000,000 - so how is expected number of loss = expected aggregate loss / expected payment with policy limit?

I understand the formula is E[S]=E[N]*E[X] but my understanding is that this E[min(Loss;1,000,000)] is not E[X].

Also, anyone found Abe (the one who wrote the book and made the coaching actuaries videos) a bit passive aggressive when answering questions? I feel dis-encouraged asking questions on CA because of that..
Reply With Quote
  #2  
Old 05-22-2018, 08:31 PM
Academic Actuary Academic Actuary is offline
Member
 
Join Date: Sep 2009
Posts: 7,638
Default

It would help if you could post the problem as some people do not have the manual.
Reply With Quote
  #3  
Old 05-22-2018, 08:59 PM
Abraham Weishaus Abraham Weishaus is offline
Member
SOA AAA
 
Join Date: Oct 2001
Posts: 7,155
Default

Aggregate losses are the total losses after individual deductibles and limits, so they already take the 1000000 per-claim limit into account. Aggregate losses are only modified by aggregate deductibles and aggregate limits.
Reply With Quote
Reply

Tags
asm c/4 exam

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 07:37 PM.


Powered by vBulletin®
Copyright ©2000 - 2018, 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 0.20611 seconds with 11 queries