How is Couplas related to Exam C?

[psp-fifa-fan]

Does anyone know how is couplas related to exam C's materials and how is it helping the actuarial profession?

Thanks.

[Actuarialsuck]

Originally Posted by psp-fifa-fan

Does anyone know how is couplas related to exam C's materials and how is it helping the actuarial profession?

Thanks.

Ask these guys http://www.actuarialoutpost.com/actu...d.php?t=236188

[BlackSwans]

Copulas are not covered on exam C

[campbell]

but they do show up on AFE

[Bobby]

Copulas are useful in the actuarial profession because they allow you to join different distributions together easily. For example, you can join lognormal stock distribution with Pareto insurance loss distributions with a copula. Without copulas, in order to join distributions, you would need to find a closed-form solution for each set of distributions you want to join, which would be difficult for ERM models where you may need to join tens of unrelated distributions together.

Copulas also allow for you to select the behavior of the relationship between two distributions. For instance, you may want stock returns and insurance underwriting losses to show weak correlation near the mean, but display high correlation in the tail.

[mathmajor]

To answer your question,

*looks up Coupla on wikipedia*

Yes.