Zusammenfassung der Ressource
Multiple state models
- Useful as models for different types of life insurance policies.
- More complicated forms of insurance require more
complicated models.
- These models consist of
a finite set of states
with arrows indicating
possible movements
between some, but not
necessarily all, pairs of
states.
- It is the benefits provided by the insurance policy which
determine the nature of the appropriate model.
- Examples
- Stochastic process
- discret time
- continuos time
- Collection of random variables
indexed by a continuous time
variable.