When I study for exams, I often see somethin in the material that makes me angry. This time, I felt like I needed to vent. I apologize in advance.
In Clark, you can use the growth function to calculate the discounted reserve.
The formula makes sense... IF we are talking about reserves calculated with the LDF Method.
BUT THEY DON'T MENTION ANY OTHER FORMULA. And then, the Casual Fellow manual has a practice problem. It uses this formula, which is REALLY only correct for the LDF Method and applies it to an ultimate calculated from the Cape Code method.
RAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAYYYYYYYY YYYYYYYGEEEEEEEEEEEEEEEEEEEEEEEEEEE!
This does NOT work! You end up allocating a different $ of reserve (Depending on if Cape Cod would produce a lower or higher estimate, given the growth functions.)
/me inhales.
/me exhales.
Ok, I'm good now. I just hate when I have to teach myself something illogical.
:beer::beer::beer:
In Clark, you can use the growth function to calculate the discounted reserve.
The formula makes sense... IF we are talking about reserves calculated with the LDF Method.
BUT THEY DON'T MENTION ANY OTHER FORMULA. And then, the Casual Fellow manual has a practice problem. It uses this formula, which is REALLY only correct for the LDF Method and applies it to an ultimate calculated from the Cape Code method.
RAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAYYYYYYYY YYYYYYYGEEEEEEEEEEEEEEEEEEEEEEEEEEE!
This does NOT work! You end up allocating a different $ of reserve (Depending on if Cape Cod would produce a lower or higher estimate, given the growth functions.)
/me inhales.
/me exhales.
Ok, I'm good now. I just hate when I have to teach myself something illogical.
:beer::beer::beer:
Small, Petty Rant.