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CP2 – Modelling Practice
6 sections available · 15 chapters available
Free CP2 – Modelling Practice study notes for IFoA (Institute and Faculty of Actuaries) students. Each chapter below covers a key topic with worked examples and practice prompts you can take into the thinka app.
Preparation and analysis of data
Use appropriate tools for checking, cleaning, restructuring and transforming data to make it suitable for analysis
Summarise data using appropriate analysis, descriptive statistics and graphical representation
Select and carry out appropriate statistical tests of reasonableness
Make appropriate assumptions about the data provided
Repair corrupt or missing data
Development of a model with clear documentation
Plan and produce a spreadsheet model to solve a specified problem
Create appropriate charts to support visual interpretation of the results
Model testing
Perform checks on the intermediate and final results of a model
Comment on the reasonableness of the results from a model under different scenarios
Documentation
Create a clear audit trail, which could be followed by a senior actuary and would enable the model to be worked on and corrected by a fellow student
Draft a clear summary of the model and the results for a senior actuary
Communication of results and conclusions
Analytical comments on each stage of the results, including explaining patterns in the results and any unusual features
An explanation of the differences between the results under the various strategies modelled
Next steps
Possible enhancements to the model
Additional modelling to provide additional information to support the project's objectives
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