Question

What is the first step in the general process for setting assumptions?

a.

Make best estimates of the parameters

b.

Investigate historical experience

c.

Consider future economic conditions

d.

Determine prudential margins

Answer: (b).Investigate historical experience Explanation:The first step in the general process for setting assumptions is to investigate historical experience using appropriate and relevant past data.

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Q. What is the first step in the general process for setting assumptions?

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