Sample exam solution

[Nimisha]

Hi
In the Specimen Paper solutions (Pass), it says:

"In terms of the gender mix by type of cover we currently experience the distribution shown below:
Male Female
PTP 57% 43%
PFC 53% 47%"
Please explain the calculation for this.

Also, I was under the impression that we only have to include the information provided.But to show the likely change in premiums post the regulation change random numbers have been taken.
Any rule of thumb to decide whether we should show hypothetical numbers or not?

 

[Ian Senator]

Always worth searching forums: https://www.acted.co.uk/forums/index.php?threads/specimen-paper-solutions.15701/

No rule of thumb, but it's probably unlikely to be necessary if you can still get the message across using the information you have been given. Further discussion of this, and the Specimen Exam, is in ASET.

 

[Nimisha]

Alright,thank you.
I had searched it on the forum but still couldn't comprehend completely.
Would appreciate if you could elaborate on the response mentioned in the forum.

 

[Helen Evans]

Hi Nimisha
If we take a simplified example and imagine just 100 policies sold (and live with idea of being able to buy part of a policy!) we would have:
Males buy 54 policies, Females buy 46 policies.
Of the 54 policies bought by males 33% are third party, ie they buy 0.33*54 = 17.82 policies
Of the 46 policies bought by females 29% are third party, ie they buy 0.29*46=13.34 policies
So percentage bought by males = 17.82/(17.82+13.34)= 57% etc

I do though agree with Ian that a good answer that would be a Pass could almost certainly have been achieved with a different perhaps simpler use of the figures.

I hope this helps