Re: Simulation software
kathy gile ( kgecorp@ix21.ix.netcom.com )
Wed, 03 Sep 1997 20:48:52 -0500
Mary Frances Miller wrote:
>
> This will seem like a really dumb question, but how do you model the
> aggregate (frequency x severity) distribution with @RISK, once you
> have selected a frequency and a severity? I can see how to model with
> one distribution (very easy), but how do you put the two together?
>
> ______________________________ Reply Separator _________________________________
> Subject: Re: Simulation software
> Author: Sheikh Rahman <rahmansm@front.net> at _internet
> Date: 9/2/97 7:23 PM
>
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I, myself, have never seen a software package that takes into account
(1) exposure, (2) frequency, (3) severity, and (4) trend to produce
simulations that are useful. In my opinion, the best way for an
actuary to do this is to pick a programming language and just
do it! The packages that are out there are great for a starting
point. BESTFIT in particular is excellent (I think) for helping to make
the decision as to the best MODELS (frequency and severity), but from
there we are on our own - especially when we are dealing (as I do)
with low frequency/high severity/volatile coverages.
Brad Gile
Visit the CAS Web Site at http://www.casact.org
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