Question

What should remain stable over time to ensure the validity of grouped data in experience analysis?

a.

The size of each group

b.

The risk characteristics of each group

c.

The time period for data collection

d.

The sources of data for each group

Answer: (b).The risk characteristics of each group Explanation:The risk characteristics of each group should remain stable over time to ensure the validity of grouped data in experience analysis. Changes in risk characteristics within groups can lead to incorrect conclusions about changes in experience.

Interact with the Community - Share Your Thoughts

Uncertain About the Answer? Seek Clarification Here.

Understand the Explanation? Include it Here.

Q. What should remain stable over time to ensure the validity of grouped data in experience analysis?

Similar Questions

Explore Relevant Multiple Choice Questions (MCQs)

Q. What is an upper limit on the time interval for conducting mortality investigations?

Q. What is the first step in deriving assumptions for mortality or morbidity studies?

Q. Why is the time period important in collecting data for mortality or morbidity studies?

Q. What is the recommended time interval for mortality analysis?

Q. Which source is considered the best for mortality or morbidity data?

Q. Why should the period of investigation not be too large for mortality analysis?

Q. What are some factors considered for grouping data in mortality or morbidity analysis?

Q. How is the expected experience calculated in mortality or morbidity analysis?

Q. What does "Actual vs Expected (A/E)" represent in mortality or morbidity analysis?

Q. What is the credibility analysis in mortality or morbidity analysis?

Q. How are mortality or morbidity assumptions typically represented in practice?

Q. What does credibility analysis in mortality or morbidity analysis primarily focus on?

Q. How is the credibility factor calculated in mortality or morbidity analysis?

Q. What does a credibility factor of 0% signify in mortality or morbidity analysis?

Q. In the formula for finding adjustment factors, what does 'A' represent?

Q. How does the adjustment factor change with a credibility factor of 100%?

Q. What is mortality risk primarily concerned with in insurance?

Q. What is "model" risk in mortality assumption setting?

Q. How does parameter risk differ from model risk in mortality assumption setting?

Q. What contributes to parameter risk in mortality assumption setting?

Recommended Subjects

Are you eager to expand your knowledge beyond IC 92 Actuarial Aspects of Product Development? We've handpicked a range of related categories that you might find intriguing.

Click on the categories below to discover a wealth of MCQs and enrich your understanding of various subjects. Happy exploring!