• We are pleased to announce that the winner of our Feedback Prize Draw for the Winter 2024-25 session and winning £150 of gift vouchers is Zhao Liang Tay. Congratulations to Zhao Liang. If you fancy winning £150 worth of gift vouchers (from a major UK store) for the Summer 2025 exam sitting for just a few minutes of your time throughout the session, please see our website at https://www.acted.co.uk/further-info.html?pat=feedback#feedback-prize for more information on how you can make sure your name is included in the draw at the end of the session.
  • Please be advised that the SP1, SP5 and SP7 X1 deadline is the 14th July and not the 17th June as first stated. Please accept out apologies for any confusion caused.

SP8 - April 2020 Qu 10

Q

Qayanaat

Member
Hi, 2 questions please:

1. Can you please tell me how values in column C of the examiner's report is calculated please?
i.e. Losses > x% of SI (capped at x% of SI)

2. Also, the values in column B (Total value of losses <= x% of SI), I noticed that the solution uses the most approximate values from the 1st table. Is that the proper way to do it or should we have used interpolation? I used interpolation which changes the figures in that column a good bit.

Thanks a lot
 
Column C: For example, for the 20% row, add up the sums insured for which the loss amount (as a % of the SI) exceeds 20%. Then multiply by 20%. Full details shown in mini-ASET.

Interpolation: No need to interpolate. When people use the curve you put together, they'll interpolate between relevant points of the exposure curve. Also, notice that linear interpolation isn't great with exposure curves (as they're not particularly linear), although in an exam setting it's often allowable.
 
You must log in or register to reply here.
Back
Top