I can't seem to match the solution for part c item i). I can derive the IVaR, but either using the prior weights or new weights, I can't get the published solution.
Working backwards, if I assume the P is the old 4625, and Z doesn't change I'm differing by 0.00015 on the remaining piece of the IVaR.
5392.05 = dVaR/dw1 from the solution
If we assume P = 4625 and Z = 1.645
5392.05 = (stuff)*4625*1.645 => stuff = 0.7087
If you calculate stuff with w1/w2 without adjusting for new $10 I get stuff = 0.7088 - which is enough to get significantly different answers.
If I calculate stuff with w1/w2 adjusted for new $10 in 1 I get stuff = 0.71007. Which again is enough to get significantly different answers than the solution.
I feel like I'm missing something. Can anyone help?
Working backwards, if I assume the P is the old 4625, and Z doesn't change I'm differing by 0.00015 on the remaining piece of the IVaR.
5392.05 = dVaR/dw1 from the solution
If we assume P = 4625 and Z = 1.645
5392.05 = (stuff)*4625*1.645 => stuff = 0.7087
If you calculate stuff with w1/w2 without adjusting for new $10 I get stuff = 0.7088 - which is enough to get significantly different answers.
If I calculate stuff with w1/w2 adjusted for new $10 in 1 I get stuff = 0.71007. Which again is enough to get significantly different answers than the solution.
I feel like I'm missing something. Can anyone help?
Fall 2014 #1
