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

1 name the three measures that examine a firms per-unit

1. Name the three measures that examine a firm's per-unit cost at a given level of output. 2. Why does a firm's fixed cost not affect its marginal cost of producing an additional unit of a product? 3. Why is a firm's sho ...

Determine the ionic strength and corresponding debye

Determine the ionic strength and corresponding Debye lengths for the following solutions: 0.005 M sodium sulfate, 0.001 M calcium sulfate, and 0.001 M ferrous ammonium sulfate.

The challenge solution says that a gas tax is roughly

The Challenge Solution says that a gas tax is roughly equally shared by consumers and firms in the long run. What can you say about the elasticities of supply and demand? If in the short run the supply curve is nearly ve ...

Toyota regularly takes its own cars in trade for new models

Toyota regularly takes its own cars in trade for new models. It then subjects them to a rigorous inspection process, fixing defects as it goes, and offers them for sale with an extended warranty. Explain how these proced ...

Consider the graph below which illustrates the demand for

Consider the graph below, which illustrates the demand for Fluff. Fluff can be produced at a constant marginal and average total cost of $4 per case. a. Draw in a carefully constructed marginal revenue curve. b. Apply th ...

1 describe the two branches of general equilibrium

1. Describe the two branches of general equilibrium analysis. 2. Social welfare functions combine the utility levels of everyone in society into a single index. List three types of social welfare functions and discuss wh ...

Many corporations allow ceos to use the firms corporate jet

Many corporations allow CEOs to use the firm's corporate jet for personal travel. The Internal Revenue Service (IRS) requires that the firm report personal use of its corporate jet as taxable executive income, and the Se ...

Which of the following statements are examples of positive

Which of the following statements are examples of positive economic analysis? Which are examples of normative analysis? a. The inheritance tax should be repealed because it is unfair. b. Allowing Chile to join NAFTA woul ...

Write a three to four 3-4 page paper in which the student

Write a three to four (3-4) page paper in which the student addresses the following three (3) items using headers to separate each response: Congressional Ethics. Identify one (1) member of Congress who has been charged ...

Because cooking souffleacutes is incredibly difficult the

Because cooking soufflés is incredibly difficult, the supply of soufflés in a small French town is controlled by two bakers, Gaston and Pierre. The demand for soufflés is given by P = 30 - 2Q, and the marginal and averag ...

  • 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