It does affect how one would actually "run" such an analysis. It is
part of the model mechanics, and it is probably a good study practice
to know a detail that would affect what data you use. In a numeric
problem, you can often be expected to know which data to keep and which
to ignore, and the "correct" solution will be the way the authors work
the problem.
I would also think that it goes with the statement that Adler-Kline
make about the data being "normally available in a reserving datatbase"
also applies here. In some situations, making that CWOLP adjustment
would be difficult or impossible based on the company's data.
jimshoenfelt@amdyne.net on 08/19/98 08:40:43 AM
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cc:
From: jimshoenfelt@amdyne.net
Date: 08/19/98 08:40 AM
Subject: Adler-Kline
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Last year's exam had a true false question which ensured that one knew
that in Adler-kline's model's closed claims included closed without
payment claims (CWOLP). I understand that Adler-Kline needed to decide
whether to include them or not, but is there anything important about
that decision? Is there some significance to their decision to include
CWOLPs??
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