Question

Which of the following is NOT a step in the general process for setting assumptions?

a.

Determining future experience expectations

b.

Considering margins against adverse future experience

c.

Calculating short-term financial gains

d.

Making long-term assumptions for each parameter

Answer: (c).Calculating short-term financial gains Explanation:Calculating short-term financial gains is not a step in the general process for setting assumptions. Instead, the process focuses on making long-term assumptions and considering future experience expectations and margins against adverse future experience.

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Q. Which of the following is NOT a step in the general process for setting assumptions?

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