Actuarial Outpost
EPV
I understand it all except the numerator for EPV:
EPV = [(10/3)(4-1) + (1)(3-1)] / [4-1 + 3-1]
Why are the 4-1 and 3-1 up there on the numerator?
None of the formulas I've come across have this form.
EPV
Article plus récent
Article plus ancien
Accueil