Listen now as April Shen, FSA, CFA, interviews Eric Schwartz, FSA, MAAA, on communicating actuarial model results. In this podcast, Eric discusses key questions and strategies actuaries should think about when they communicate model results to various stakeholders.
Most people are probably familiar with the famous quote by George E.P. Box, “All models are wrong, but some are useful.”
Models are great tools and we can always get them to produce an answer. But we need to be careful how to interpret that answer. It is usually indicative of the expected result, but it is also, as George Box notes, wrong. There is usually uncertainty surrounding the data, assumptions and methodology underlying the models, and each of these will cause the actual result to differ from what is predicted.
It is important to communicate this uncertainty to the stakeholders relying on the model results. In this episode, we will discuss the key questions modelers should think about when they communicate the model results.
