Reply To: Interview Question 11 CT5 – Differentiate between multiple state model and multiple decrement model?

Actuary Forums Forums Actuarial Subjects CM1 (CT1 & CT5) Inerview Questions Interview Question 11 CT5 – Differentiate between multiple state model and multiple decrement model? Reply To: Interview Question 11 CT5 – Differentiate between multiple state model and multiple decrement model?

#24608
Mayank Goyal
Keymaster

    RISHABH wrote:

    Q. Differentiate between multiple state model and multiple decrement model?

    Ans:

    Multiple state model is a model where more than one decrement is available and returns to the same state is possible.

    Multiple decrement model is the one which has one active state and one or more absorbing exit states. Only one-way decrement is possible i.e. return to the same state is not possible.

    Sent from my SM-A605G using Actuarial Info mobile app

    Sent from The Actuarial Club mobile app