C7 June Seminar Questions

[CDL]

Two questions about Case Study 4:

1. Can someone please give me a better explanation of the variable ASSUME? What exactly does per occurrence retention mean? My only guesses are either it has to do with reinsurance or retention of policies (i.e., low lapses = higher retention)

2. In Exercise 3, when I try to create a histogram of FIRMCOST, Excel gives me an error which says "Histogram - Input Range must be contiguous", without any further explanation.

I followed the Appendix steps to create the histogram of the standardized residuals and when I did the exact same with FIRMCOST, I get the error. What am I doing wrong? Is the question supposed to be "create a histogram of the Predicted FIRMCOST Residuals", because that works.

Thanks!

[RedDog]

1. Not exactly sure what ASSUME means, but I don't think it's a very significant contributor to the total cost/risk. I believe it's referring to the expenses and admin related to selling insurance, which are usually fairly constant.

2. The contiguous input range is weird. But I think I got the same thing. Basically, the numbers just have to be right next to each other (Columns A & B works, Columns A & D won't work). Odd, but true I believe.

Can anyone help me out with the Extended Case Study? I see solutions for the exercises, but they don't really show their work and I'm lost.

Together, we can beat the hell out of this "exam."

[yeppers-wsmn]

What are you doing for CS8?

Anyone else have trouble reproducing the graph at the bottom of page 9 of 11? This must be a function in Excel 2000, I'm using 97 (which is the recommended software). My excel has pivot tables, but not pivot charts.

Are you guys/gals updating the 9/30/1997 report or starting one from scratch?

Are we going to be graded on this?

[A Student]

Hello,

I'm using the .DOT template to pretty much redo the 1997 report, but my report will be very similar to the 1997. I don't think we're graded on this, so I'm just shooting for ball park reasonable to get a feel for the work.

Speaking of these case studies, how much time has everybody been putting into them? They're not graded, and looking at the sample project, I'm not sure how much they will help out in the graded project. Besides, I've just started, so only have a weekend left!
Thanks....

[Me]

Originally Posted by yeppers

Anyone else have trouble reproducing the graph at the bottom of page 9 of 11? This must be a function in Excel 2000, I'm using 97 (which is the recommended software). My excel has pivot tables, but not pivot charts.

First of all, I can't believe they haven't changed CS8 to reflect its writer's stupidity. I asked about this one when I took 7. After getting a little run around, I found out that the person who wrote CS8 was using Excel 2000 and using functions we don't have in 97, despite the fact that 97 is the recommended software. You figured correctly. I did not use pivot tables or charts in my actual course 7. If anything like that would be useful, you are allowed (even during the project) to ask for help with technical things like that and they will give it.

Are we going to be graded on this?

No.

[Sancho]

Is anyone updating the operating profit projections to account for the higher lapse rates?

[Phil]

Does the project itself relate to the Extended Case Study more than it does to any of the core case studies? Or is it totally random?

Thks,
-Phil

[Me]

Unless there has been a recent change in policy, the project is based directly on an extension of the extended case study. It does not necessarily have any relation to the core case ctudies.

[JO]

Was doing all this crap prior to the seminar necessary? No.