RE: Simulation
Sce, Michael ( (no email) )
Wed, 3 Sep 1997 10:31:46 -0400
>
>
>Regarding simulation software, I would like to share a couple of points:
>
>1. Mr. Klugman's software is very good as a curve fitting device for
>frequency and severity distributions. This is input for your simulation.
>
>2. @RISK is the simulator of choice to actuaries I know. This gives you your
>confidence intervals for your financial programs. Use your results from #1.
>
>3. Research performed by our actuarial group showed that BESTFIT does not
>work! Not at all! NADA! Use Klugman's FIT instead.
>
>This research was done two years ago. In speaking with the Palisades group,
>we didn't think it was likely BESTFIT would ever be fixed. Perhaps you have
>a different expereience. However, try checking your results from BESTFIT
>with hand calculations (spreadsheet really) for the Maximum Liklihood
>Estimator (MLE). Compare results with Klugman's FIT. Everytime, hand
>calculations matched FIT. BESTFIT gave bizarre results.
>
>I wish I was wrong because I liked the user interface to BESTFIT. Does
>someone have a different experience, perhaps with a later version?
>
>Thanks,
>
>Mike Sce
>
>
>
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