Abstract
This paper addresses that class of complex problems where there is little or no underlying theory upon which to build a model and the situation dictates the use of an adaptive approach based on the observed data. The field of study is known as adaptive nonlinear models (ANMs), and its goal is to quantify interaction terms without imposing assumptions on the solution. The purpose of this paper is to discuss, in conceptual rather than technical terms, the issues related to the implementation of these ANMs. The topics covered include: a short overview of technologies used in adaptive nonlinear modeling; modeling considerations; the model development process; and a comparison of linear and nonlinear models.
Keywords: Adaptive; Nonlinear; Models; Heuristic
Volume
26:2-3
Page
289-307
Year
2000
Categories
Actuarial Applications and Methodologies
Dynamic Risk Modeling
Financial and Statistical Methods
Statistical Models and Methods
Publications
Insurance: Mathematics & Economics