In the course notes on Modelling one of the stages in developing a deterministic model is "choose the form of the model". This does not appear on the developing a stochastic model list. What does this relate to? The notes do not seem to give any further help. Is this Profit Testing / Pricing Model etc... If so then surely that relates to stochastic and deterministic?
Hi Peter "Form of model" is a bit vague, I agree. I would guess it means deciding on whether the model: - a single policy profit test model - a new business model to work out profitability and capital requirements of writing new business -an exiting busines model to work out profitability of existing business - a full model office (new and existing business) - an ALM although, it could equally mean: - a spreadsheet - a full blown modelling package (Prophet, MoSes etc) And you're dead right, it should probably include this on the stochastic model side. A year or so ago, we pushed the profession to make the two sets of steps consistent. This bit has slipped through the net. Thanks for raising it though. Anna
