Actuarial Outpost ASM 9th ed. Supplement - Supplementary Question Errors?
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#1
11-01-2009, 12:55 PM
 Actuary-2-B Join Date: Nov 2008 College: Alumni University of Waterloo Posts: 14
ASM 9th ed. Supplement - Supplementary Question Errors?

Two possible errors I see -

#14 likelihood function should be theta^3*blah NOT theta*blah, hence the integrand for the gamma distribution should be alpha = 8 (not 6) and scale parameter 1/0.0027 so its mean is 8/0.0027

#17 the question asks to calculate the predictive mean (claims submitted by this insured in the NEXT year), but the solution states the posterior mean. Therefore, solution should be 0.123249739
#2
11-01-2009, 01:13 PM
 Actuary-2-B Join Date: Nov 2008 College: Alumni University of Waterloo Posts: 14

#19 sqrt(1.04)/2.6 = 0.39223227 NOT 0.039223
#3
11-01-2009, 01:42 PM
 Actuary-2-B Join Date: Nov 2008 College: Alumni University of Waterloo Posts: 14

#21 Calculation error = 2528.23
#4
11-01-2009, 01:47 PM
 badmaj5 Member CAS Join Date: Sep 2005 Location: Chicago, IL Posts: 454

You can look at the 9th edition errata for the page number that there is an issue in the supplement.
#5
11-01-2009, 01:58 PM
 Actuary-2-B Join Date: Nov 2008 College: Alumni University of Waterloo Posts: 14

Thanks. I noticed that questions #14 and #17 were addressed. Same corrections as what I had.

There is still a question surrounding #21. Var(TVaR) - should (9588-9421) be squared? The manual doesn't indicate it should be squared. But the errata says it should be. http://www.aceyourexams.net/errata/ErrataC-9p.pdf --> page 9
#6
11-01-2009, 02:04 PM
 colby2152 Note Contributor SOA Join Date: Feb 2006 Location: Virginia Studying for FA, GH Core College: PSU '07 Favorite beer: Oskar Blues Old Chub Scotch Ale Posts: 4,177

Quote:
 Originally Posted by Actuary-2-B Thanks. I noticed that questions #14 and #17 were addressed. Same corrections as what I had. There is still a question surrounding #21. Var(TVaR) - should (9588-9421) be squared? The manual doesn't indicate it should be squared. But the errata says it should be. http://www.aceyourexams.net/errata/ErrataC-9p.pdf --> page 9
There better not be a question on the variance of TVaR on this exam. Based on all of these discussions, it should either be thrown our or multiple answers should be accepted.
__________________
P, FM, MLC, MFE, C, FAPmods, APC, VEE, IA, HFmod, FHEmod, FA, GH Core, PRFmod, GH Adv, GH Spec, DMAC, FAC

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."
#7
11-01-2009, 02:14 PM
 gordon Member Join Date: Oct 2007 Posts: 75

Quote:
 Originally Posted by colby2152 There better not be a question on the variance of TVaR on this exam. Based on all of these discussions, it should either be thrown our or multiple answers should be accepted.
Pretty sure the SOA doesn't care about errors in the study manual. The first MFE manual had an error on about every fourth question and there were no exceptions made for that.
#8
11-01-2009, 02:17 PM
 badmaj5 Member CAS Join Date: Sep 2005 Location: Chicago, IL Posts: 454

In Loss Models, it is squared - thus it is squared. As Jim Daniel pointed out, whether right or wrong, the SOA will use the method shown in the text. However, daaaave, Prof. Weishaus, and Jim Daniel all verified that it should be squared and the old material that was on the syllabus was incorrect.

All that said, it shouldn't be an issue, just square it and you're good to go.
#9
11-01-2009, 03:48 PM
 colby2152 Note Contributor SOA Join Date: Feb 2006 Location: Virginia Studying for FA, GH Core College: PSU '07 Favorite beer: Oskar Blues Old Chub Scotch Ale Posts: 4,177

Quote:
 Originally Posted by gordon Pretty sure the SOA doesn't care about errors in the study manual. The first MFE manual had an error on about every fourth question and there were no exceptions made for that.
Quote:
 Originally Posted by badmaj5 In Loss Models, it is squared - thus it is squared. As Jim Daniel pointed out, whether right or wrong, the SOA will use the method shown in the text. However, daaaave, Prof. Weishaus, and Jim Daniel all verified that it should be squared and the old material that was on the syllabus was incorrect. All that said, it shouldn't be an issue, just square it and you're good to go.
It's not just the study manual - it is the textbooks! Will the SOA rule that it should be squared or not?
__________________
P, FM, MLC, MFE, C, FAPmods, APC, VEE, IA, HFmod, FHEmod, FA, GH Core, PRFmod, GH Adv, GH Spec, DMAC, FAC

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."
#10
11-01-2009, 04:09 PM
 badmaj5 Member CAS Join Date: Sep 2005 Location: Chicago, IL Posts: 454

Quote:
 Originally Posted by colby2152 It's not just the study manual - it is the textbooks! Will the SOA rule that it should be squared or not?
Huh? The textbook has it squared. What is your question?

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