The simulations give us the "mean excess loss".
Can we assume this is a liability runoff model and not a mark to market model? Is there a way to tell - doesn't look like that is given.
Seems like when we put together our final summary, we should recommend mtm or lr method - but the only model the consultant gave us is from task 5. Thoughts?
Can we assume this is a liability runoff model and not a mark to market model? Is there a way to tell - doesn't look like that is given.
Seems like when we put together our final summary, we should recommend mtm or lr method - but the only model the consultant gave us is from task 5. Thoughts?
Task 5