4 ms·
The problem isn't the actuaries, it's the assumptions. For example, NOBODY KNOWS how much health care will cost in 20 years, but that's central to figuring out
by payne92 9y ago
The problem isn't the actuaries, it's the assumptions.
For example, NOBODY KNOWS how much health care will cost in 20 years, but that's central to figuring out defined benefit obligations (as just one example).
Or, what's a good investment rate of return assumption to use? Small differences (e.g. fractions of a percent) compounded over decades lead to huge differences.
How do you model black swan events (e.g. 2008 crash)?
- orangecrush4000 9y agoThose crashes hapoen every 40-70 years. Deleveraging is the term you are looking for