Hi all I have some questions about the ST8 paper of September 2012: 1) Question 4 iii - how did the solutions find the SI of 2012 as £35.0m? 2) Question 4 iii - what is meant (in the solutions, when working out the average for 2012) by "Simple (07-11) 6.4"? I think "07-11" means years 2007-2011, but don't know what the rest of that line means. Also how did they select which value to choose? 3) Question 8 iii b - the question asks for 'prior weight' - what is this? Thank you to anyone who can help me with this Howard
1) that was selected on page 7 of the report, as a reasonable trend from previous years. 2) they mean simple average - but they've got the years wrong, I'm pretty sure they meant 07-10. They then selected this value using actuarial judgement. 3) prior weights are the 'omegas' in the core reading. See chapter 16 page 14 and page 17.
This is for Question 4 I take it Sumrah? We do indeed apply inflation to 2007. Take a look at the top of page 7 of the Examiners' Report.