A certain fund has $80 million in plan assets and $110 million in projected liabilities. Can this sponsor use the 7-year smoothing method to catch up on the funded status requirement?

Respuesta :

They cannot use 7-year smoothing, but they will use 10-year smoothing.

What is the smoothing method?.

Data smoothing are often defined as a statistical approach of eliminating outliers from datasets to make the patterns more noticeable.

The random method, simple moving average, stochastic process , simple exponential, and exponential moving average are a number of the methods used for data smoothing

Why do we use smoothing?

Smoothing is usually done to help us better see patterns, trends for instance , in statistic . Generally smooth the irregular roughness to see a clearer signal

Learn more about projected liabilities:

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