Fall 2018 Q1
For part a), do you think this would be an acceptable answer, even though it's not on the examiner's report? Or is it just wrong, because actuarial judgment can still cause one to select in the direction outside of the indication? (honestly it's probably wrong because of what I just said, so you don't have to spend much/any time on this unless you think it'd be helpful)
Price optimization may move a final selection away from an actuarial indication, whereas actuarial judgment would point their selection in the direction of the indication.
Comments
I don't know how you differentiate an "actuarial indication" from PO and AJ.
"Actuarial judgment" describes something vague, in my opinion. By contrast, price optimization has hard methods associated with it. These two are not comparable in a scientific sense. They are comparable in the sense of the places they occupy in existing practice, which this paper attempts to do. The paper assumes the position of having a duty to uphold actuarial judgement, or at least not dispense with it off-hand. I don't subscribe to an approach that gives weight to the "wherewithal of an actuary." But, it is this paper's approach. I would stick with how they frame their arguments in the paper.