2018 Fall 12b

agnichatagnichat
in W-14-Implementation

Hello,


I attempted to solve Fall 12b using ground principles but for some reason keep getting an offset of the inverse of the 1.035. I attached work product pursuant to the effort.

Takeaways:

N29-P29 calculate (correctly) the indicated relativities.

The table in range N32:W32 show my efforts. I used unadjusted exposures. I brought the indicated factors and current factors to the same footing in column R (rows 33 to 35). The indicated changes are slightly different, so the desired change (column T) is slightly different. The rebasing then occurs in column V. The offbalance is then calculated by dividing the current sumproduct of relativities by the proposed sumproduct of relativities.


Thanks.

Comments

  • agnichatagnichat

    Upon review, I divided cell p36 by v36 to get an offbalance of 1.036 (new base rate of 1036). Would that be a correct approach?


    Thanks again.

  • GrahamGraham
    edited August 2023

    Your calculation of P36/V36 is correct but you should have used the adjusted exposures in cells O33:O35. It looks like you used the original exposures.

    You calculated the adjusted exposures correctly in N19:P19 so use those instead and you should get the exact answer of 1.035 that's given in the examiners' report.

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