White Papers

Modelling – Deterministic vs Stochastic

Introduction
Many actuaries and investment consultants provide trustees with simple projections to show where the financial status of the plan is heading. However, in many cases, these projections are based on simple assumptions which everyone knows will be wrong, but they are used for decision making purposes. The problem is these simple projections tend to hide risks from trustees and may lead the trustees into making uninformed decisions with dire consequences.

In this paper we will focus on how different types of models may lead to very different decision-making outcomes.

Here’s the paper: Modelling – Deterministic vs Stochastic

Rich Hudson

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