Can anyone help me with these two questions:
Why in the calculation of EDB you don't take into account the probability that the policyholder survived death and withdrawal in the previous years. Similar question for ESB as well.
How did you know that we were given q' instead of q for the mortality.
Thanks
Why in the calculation of EDB you don't take into account the probability that the policyholder survived death and withdrawal in the previous years. Similar question for ESB as well.
How did you know that we were given q' instead of q for the mortality.
Thanks
ASM 13 ed, Section 66A: Profit Tests: Participating Insurance
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