Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Econometrics Expert

problem 1:

i) Why is it essential to model interest stochastically? How would you like to develop a model of the stochastic interest?

ii) Rs.100 deposited 20 years ago has grown at interest to Rs.235. The interest was compounded twice a year. Determine the nominal and effective interest rates?

problem 2:

i) Discuss the difference between classical and Bayesian analysis credibility theories.

ii) From the given table, a risk is picked at random and we don’t know what kind it is. For this randomly chosen risk, during one year there are 3 claims. Use Bayesian analysis to predict the future claim frequency of this same risk. (Suppose that the kinds are homogeneous).

982_bayesian analysis.jpg

problem 3: Discuss the methods you would like to use for reinsurance. Justify your choice.

problem 4: Formulate the Lundberg Risk Model. What modifications you might like to introduce in it for providing an alternative?

problem 5: What is a DFA model? Outline its significant components and spell out their significance.

problem 6: describe the main claim reserving models. Given a choice which of such would you like to prefer? Provide reason in support of your answer.

problem 7: Answer the given as directed:

a) prepare a short note on the Survival Function.

b) Distinguish between insurance price setting and finance market pricing.

c) Show that the Black-Scholes formula for the price of a call option gives a price, which tends to max [S – X, 0] as t → T.

d) How would you utilize the binomial tree approach to value an American option on a   stock index whenever the dividend yield on index is a function of time? 

Econometrics, Economics

  • Category:- Econometrics
  • Reference No.:- M92085

Have any Question? 


Related Questions in Econometrics

Unique creations holds a monopoly position in the

Unique Creations holds a monopoly position in the production and sale of magnometers. The cost function facing Unique is estimated to be TC = $100,000 + 20Q a. What is the marginal cost for Unique? b. If the price elasti ...

The following adsorption data were reported by thoma 1994

The following adsorption data were reported by Thoma (1994) for the adsorption of a polyaromatic hydrocarbon (pyrene) on a local sediment (University lake, Baton Rouge, Louisiana). The molecular weight of pyrene is 202 a ...

Suppose that five bidders with values of 500 400 300 200

Suppose that five bidders with values of $500, $400, $300, $200, and $100 attend an oral auction. Which of these is closest to the winning price?

The ajax corporation has the following set of projects

The Ajax Corporation has the following set of projects available to it: Use the marginal cost and marginal revenue concepts developed in this chapter to derive an optimal capital budget for Ajax

In the late 1800s wildcat banks which were easy to charter

In the late 1800s "wildcat banks," which were easy to charter and largely unregulated, sprang up across the American West. Some new banks chose to operate out of simple and inexpensive wooden structures, but others built ...

Many cities have experienced a substantial decrease in the

Many cities have experienced a substantial decrease in the amount of garbage being collected after they changed from levying a flat tax on each household to a system where the homeowner is charged a fee for each bag or c ...

Imagine that you have 100 of ill-gotten gains stashed in an

Imagine that you have $100 of ill-gotten gains stashed in an offshore bank account. Lest the IRS get too nosey, you plan to leave that account idle until your retirement in 45 years. a. If your bank pays you 3% annual in ...

The chapter provides data indicating that there are many

The chapter provides data indicating that there are many more sole proprietorships than corporations or partnerships. Why are there so many sole proprietorships? Why is the revenue of the average sole proprietorship less ...

1 based on the information in the application malthus and

1. Based on the information in the application "Malthus and the Green Revolution," how did the average product of labor for corn change over time? 2. What is the difference between an isoquant and an indifference curve?

A calculate the emitter base and collector transit times

(a) Calculate the emitter, base, and collector transit times for the transistor structure described in problem 8.1. (b) Calculate the same quantities you did in part a for a pnp transistor in which the magnitudes of the ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

WalMart Identification of theory and critical discussion

Drawing on the prescribed text and/or relevant academic literature, produce a paper which discusses the nature of group

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro