Question

What is the purpose of regrouping data in withdrawal experience analysis?

a.

To manipulate the data to fit predetermined conclusions

b.

To identify statistically significant differences in withdrawal rates

c.

To avoid spurious results caused by small data groups

d.

To simplify the presentation of results for management information purposes

Answer: (c).To avoid spurious results caused by small data groups Explanation:The purpose of regrouping data in withdrawal experience analysis is to avoid spurious results caused by small data groups, which may lead to statistically weird differences in withdrawal rates.

Interact with the Community - Share Your Thoughts

Uncertain About the Answer? Seek Clarification Here.

Understand the Explanation? Include it Here.

Q. What is the purpose of regrouping data in withdrawal experience analysis?

Similar Questions

Explore Relevant Multiple Choice Questions (MCQs)

Q. When would the presentation of withdrawal rate results require further consolidation?

Q. What factors are considered when determining the weight to give to own experience and estimation in withdrawal experience analysis?

Q. What does withdrawal risk refer to in insurance?

Q. How can term products be designed to mitigate withdrawal risk?

Q. What is model risk associated with withdrawal risk?

Q. How do withdrawals impact mortality and expense assumptions in insurance?

Q. What is the main factor determining the financial significance of withdrawal risk in insurance?

Q. How can withdrawal risk be primarily controlled in insurance?

Q. What approach can be used to incentivize agents to promote persistency?

Q. How can insurance companies encourage regular premium payments?

Q. Which statement accurately describes persistency in life insurance policies?

Q. How are withdrawal rates related to persistency rates?

Q. What impact do withdrawal rates have on profits in insurance?

Q. What is withdrawal risk in insurance?

Q. How is withdrawal risk mainly controlled in insurance?

Q. If actual profits from withdrawal are more than the expected profit without withdrawals, then this policy will impact profit…..

Q. Which of the following is a factor to determine the rate of withdrawal?

Q. Credibility analysis is never used for the calculation of withdrawal rates:

Q. Which of the following is not dependent on withdrawal rates?

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!