Hi, In Paper B of Sept 2020 IFoA there is a something I am confused about. In the solution, a goal seek is used to calculate the revised policy premium(Scenario 1) and the revised policy excess(Scenario 2). 1. I cannot see where the goal seek is used in the excel working solution? 2. But I checked myself by doing it for both scenarios. For scenario 1, my answer is matching with the solution i.e. revised premium is $20.96 For scenario 2, my answer is not matching with the solution. The solution says revised policy excess to be $60.01 but mine is $61.58 What I have used: Set cell = M25 (Accumulated profit at month end December) i.e. 2,849 To value = 12952 By changing cell = Policy excess i.e. $50 It returns $61.58 Could anyone please explain how $60.01 in the solution is calculated?
I haven't gone back to look at the question again, but from memory (triggered by that $61.58 being familiar), there were a number of areas of the model that needed to be modified so that they picked up the revised excess amount. Check that you're applying the excess correctly to the data throughout the process - it's more than just a simple goalseek. If that doesn't help, post again and I can look into it properly.
