IAI CB1 case studies
IAI CB1 · Put your knowledge to work in context.
CB1 (Business Economics) is one of the Core Principles subjects in the examination structure of the Institute of Actuaries of India (IAI). IAI is a statutory body established under The Actuaries Act 2006 (35 of 2006) for regulation of the profession of actuaries in India; the provisions of that Act came into force on 10 November 2006 under a Government of India notification dated 8 November 2006 issued by the Ministry of Finance, Department of Economic Affairs. The IAI CB1 case studies are 5 cases and about 5,062 words.
1The Congestion Charge Model: How Much Should a €180m Welfare Gain Be Trusted?
A transport ministry is evaluating a congestion charge for a city of 1.4 million residents. Consultants built a spreadsheet model in which weekday car trips fall according to a single assumed elasticity of −0.35 with respect to the cost of a trip, and in which all charge revenue is recycled into bus services.
1,002 words, about 5 min2The Coffee Roaster: A Supermarket Contract Below Average Cost
A regional coffee roaster sells 18,000 kg a month at £14.00/kg. Monthly fixed costs are £54,000, so average fixed cost is £3.00/kg.
1,042 words, about 5 min3The Supermarket Merger: HHI, Price-Matching and Local Overlaps
Three supermarket chains and four independents supply a regional grocery market with annual sales of £2.4bn. Revenue shares are Ashtons 34%, Bridgeway 26%, Co-op Vale 11%, and four independent chains with 8%, 7%, 7% and 7%.
945 words, about 5 min4A Small Euro-Area Economy: Output Gap, Multiplier and the Self-Financing Question
A small open euro-area member state has potential output growth of 1.6% a year. Last year actual growth was 0.4%, unemployment rose from 6.2% to 7.8%, and headline inflation fell from 3.1% to 1.2% while core inflation held at 2.4%.
1,003 words, about 5 min5Defending the Kestrel Peg: Reserves, Parity and the Balance-Sheet Trap
Kestrelia pegs the kestrel at K5.00 to the US dollar. Domestic inflation is 9% against 2.5% in the United States.
1,070 words, about 5 min