Assumptions

Question 0

Characteristics of assumptions?

Answer 0

Explicit versus implicit;
Economic versus non-economic;
Chronology;
Demographic ;
Experience-based;
Behavioral.

Question 1

Method of creating assumptions?

Answer 1

Select assumptions - relevancy, required by model, materiality, appropriate ;
Quantify assumptions - methods (historical data analysis), tools (secondary models), materiality, adequate and appropriate ;
Monitor assumptions - analysis of experience , tools for analysis, materiality , adequate and appropriate .