Business Commons^™

The Role Of Motivated Reasoning In Vendor Consideration, Ju-Young Park, Ravipreet S. Sohi, Ray Marquardt

Department of Marketing: Faculty Publications

This is a conceptual article dealing with the role of motivated reasoning in vendor selection. The authors argue that organizational buyers' motivated reasoning, along with the task characteristics of perceived importance and familiarity, plays an important role in determining whether an open or a closed consideration will be used for vendor selection. Based on the relationship between motivated reasoning and task characteristics, the authors develop several propositions.

The Effects Of Individual, Contextual, And Moral Intensity Factors On Environmental Ethical Decision Making, Brenda L. Flannery

College of Business: Dissertations, Theses, and Student Research

Most extant studies of organizational ethical decision making have been remiss in doing one or more of the following: (a) building theoretical foundations; (b) encompassing the individual. contextual, and issue-specific determinants impacting ethical judgments; (c) offering testable hypotheses; and/or (d) establishing methodological rigor. This study confronted those challenges aiming to understand the decision intentions of top managers in the metal finishing industry concerning the treatment of hazardous wastewater.

This study employed an extended version of Ajzen's (1988) theory of planned behavior. The theory accommodatingly modeled the individual (i.e., attitudes, self-efficacy. personal moral obligation), contextual (subjective norms, organizational climate, and financial …

Journal Of Actuarial Practice, Volume 5, No. 1, 1997, Colin Ramsay , Editor

Journal of Actuarial Practice (1993-2006)

ARTICLES

Providing Pensions for U.K. Employees with Varied Working Lives • Deborah R. Cooper

Seeking the Profitability-Risk-Competitiveness Frontier Using a Genetic Algorithm • Ronnie Tan

Fuzzy Underwriting: An Application of Fuzzy Logic to Medical Underwriting • Per-Johan Horgby, * Ralf Lohse, and Nicola-Alexander Sittaro

Accelerated Death Benefits, Viatical Settlements, and Viatical Loans: Options for the Terminally III • Paula Schmidt

The Right to Underwrite? An Actuarial Perspective With a Difference • Thomas A. Moultrie and R. Guy Thomast

Discussion of T.A. Moultrie and R.G. Thomas's ''The Right to Underwrite? An Actuarial Perspective With a Difference" • Charles L. Trowbridge

Editor …

Journal Of Actuarial Practice, Volume 5, No. 2, 1997, Colin Ramsay , Editor

Journal of Actuarial Practice (1993-2006)

Articles:

With Different Term Structure Models • Eliseo Navarro and Juan M. Nave

A New Approach for Determining Claim Expense Reserves in Workers Compensation • Kay Rahardjo

Pricing Earthquake Exposure Using Modeling • Debra L. Werland and Joseph W. Pitts

Actuarial Model Assumptions for Australian Inflation, Equity Returns, and Interest Rates • Michael Sherris

Comments on Some Parametric Models for Mortality Tables • Kam C. Yuen

Editor - Colin Ramsay, University of Nebraska. Associate Editors: Robert Brown, University of Waterloo ○ Cecil Bykerk, Mutual of Omaha ○ Ruy Cardoso, Actuarial Frameworks ○ Samuel Cox, Georgia State …

Providing Pensions For U.K. Employees With Varied Working Lives, Deborah R. Cooper

Journal of Actuarial Practice (1993-2006)

Several different working lives are investigated, including employees with breaks in employment, part-time employment, and temporary employment. The pensions that could be provided to the different employees by final salary, revalued career average, or money purchase pension schemes (plans) are calculated and compared. Some of the weaknesses in a final salary pension scheme (the treatment of deferred pensioners and cross subsidies between different groups of member) are considered. Possible alternative benefit structures are considered to address the problems.

The Right To Underwrite? An Actuarial Perspective With A Difference, Thomas A. Moultrie, Guy R. Thomas

Journal of Actuarial Practice (1993-2006)

For a long time underwriting has been a part of the actuarial canon. With increasing frequency, however, challenges are being issued against the right of insurance companies to underwrite applications for new bUSiness, arguing that certain aspects of the practice are undesirably discriminatory. We explore the role of the actuary in the underwriting process and the challenges that are being set for the profession (as opposed to the life insurance industry) as a result of this role. As the distinction between the interests of the actuarial profession and the interests of the life insurance companies has become increasingly blurred, we …

Dynamic Immunization And Transaction Costs With Different Term Structure Models, Eliseo Navarro, Juan M. Nave

Journal of Actuarial Practice (1993-2006)

A bond portfolio selection model is developed in a dynamic framework using different term structures, but without transactions costs. We show that the optimal portfolios are consistent with Khang's dynamic immunization theorem, i.e., the optimal path consists of making portfolio duration equal to the investor's horizon planning period. The model is then extended to include transaction costs. The resulting optimal portfolios are no longer consistent with Khang's dynamic immunization theorem. In fact, the strategy for constructing the optimal portfolio consists of initially choosing a portfolio with a duration that is smaller than the horizon planning period.

A New Approach For Determining Claim Expense Reserves In Workers Compensation, Kay Rahardjo

Journal of Actuarial Practice (1993-2006)

This paper describes a new approach for determining a reserve for claim expenses. While the discussion focuses on workers compensation claims, the methodology is equally applicable to other lines of business. The approach also can be applied to the calculation of the reserve for all claims (including IBNR claims) and the reserve for claims reported to date (excluding IBNR claims). In addition, a methodology for pricing claims-handling services is discussed. The implications of pricing claims-handling services on a handle-to- conclusion basis versus pricing claims-handling services on a limited time handling basis are examined. Finally, the paper discusses a methodology for …

Accelerated Death Benefits, Viatical Settlements, And Viatical Loans: Options For The Terminally Iii, Paula Schmidt

Journal of Actuarial Practice (1993-2006)

There are three options available for terminally ill insureds who are interested in accessing all or part of the face value of their life insurance policies: through the life insurance company (accelerated death benefits), through a viatical company (a via tical settlement), or through a via tical loan company (a via tical loan). This paper explores the definitions and tax regulations, calculations, and the claims process associated with accelerated death benefits and via tical settlements and loans.

Seeking The Profitability-Risk-Competitiveness Frontier Using A Genetic Algorithm, Ronnie Tan

Journal of Actuarial Practice (1993-2006)

Monte Carlo simulation is used to develop a flexible framework to measure the profitability, risk, and competitiveness of any insurance product. A genetic algorithm is then used to seek the optimum asset allocations that form the profitability-risk-competitiveness frontier and to examine the profitability, risk, and competitiveness trade-off's. We also show how to select the appropriate asset allocation and crediting strategy in order to position the product at the DeSired location on the profitability-risk-competitiveness spectrum.

Discussion Of T.A. Moultrie And R.G. Thomas's ''The Right To Underwrite? An Actuarial Perspective With A Difference", Charles L. Trowbridge

Journal of Actuarial Practice (1993-2006)

This interesting but controversial paper studies a subject I too have seriously considered. Nearly a decade ago I was commissioned to prepare a monograph that appeared in 1989 under the auspices of the Actuarial Education and Research Fund under the title Fundamental Concepts of Actuarial Science. 1 Chapter VII of this work, "Classification, Selection, and Antiselection," claims that the cluster of ideas surrounding these three words form a fundamental actuarial concept. I have recently reviewed this monograph (hereinafter FCAS) and am struck by the dissimilarities between the two treatments. The authors of "The Right to Underwrite?" (RTU) were unaware of …

Comments On Some Parametric Models For Mortality Tables, Kam C. Yuen

Journal of Actuarial Practice (1993-2006)

Parametric models for the entire age pattern of mortality have been suggested by Heligman and Pollard (1980) and Carriere (1992). The former is designed to fit the classical mortality pattern while the latter is supported by a statistical theory. Insights into their papers motivate us to consider a variation of the Heligman-Pollard model. We also apply these models to the 1993 Hong Kong Assured Lives Mortality Tables as well as the 1991 Hong Kong Female Life Table. This paper is not intended to construct a better parametric model for mortality tables; the main purpose is simply to provide insights into …

Fuzzy Underwriting: An Application Of Fuzzy Logic To Medical Underwriting, Per-Johan Horgby, Ralf Lohse, Nicola-Alexander Sittaro

Journal of Actuarial Practice (1993-2006)

One of the most difficult issues in the medical underwriting of life insurance applicants is diabetes mellitus. Compiling the prognosticating parameters for diabetic applicants results in a complex system of mutually interacting factors. In addition, neither the prognosticating factors themselves nor their impact on the mortality risk is clear cut. We show how a fuzzy inference system can be used in underwriting diabetes mellitus. A fuzzy inference system can cope with the imprecise nature of medical parameters by converting them into fuzzy sets and aggregating them using mathematical techniques. The fuzzy underwriting system presented goes further than previous applications of …

Actuarial Model Assumptions For Australian Inflation, Equity Returns, And Interest Rates, Michael Sherris

Journal of Actuarial Practice (1993-2006)

Though actuaries have developed several types of stochastic investment models for inflation, stock market returns, and interest rates, there are two commonly used in practice: autoregressive time series models with normally distributed errors, and autoregressive conditional heteroscedasticity (ARCH) models. ARCH models are particularly suited when there is heteroscedasticity in inflation and interest rate series. In such cases nonnormal residuals are found in the empirical data. This paper examines whether Australian univariate inflation and interest rate data are consistent with autoregressive time series and ARCH model assumptions.

Pricing Earthquake Exposure Using Modeling, Debra L. Werland, Joseph W. Pitts

Journal of Actuarial Practice (1993-2006)

This paper demonstrates a practical methodology for determining a statewide rate level indication for the earthquake insurance and for determining more equitable territorial relativities within a state. The methodology is based on the output from a certain commercially available earthquake modeling software package. The methodology addresses some of the complex issues involved in pricing earthquake insurance exposure and potential regulatory acceptance. The paper also features a section dealing with the net cost of reinsurance in the proposed direct rates. A final consideration is the treatment of a model's output when it is believed the modeled results art' less than fully …

Divergent Effects Of Job Control On Coping With Work Stressors: The Key Role Of Self-Efficacy, John Schaubroeck, Deryl E. Merritt

Department of Management: Faculty Publications

This study identifies job self-efficacy as a moderating variable that may determine whether job control contributes positively or negative to coping with work stressors. Data from two samples (health professionals and an occupationally diverse group) demonstrated similar interactions between demands, control, and self-efficacy predicting blood pressure. These results may reconcile the previous inconsistent and largely method-bound support for Karasek's job demands-control model and suggest that efforts to improve job self-efficacy may be as important to reducing the cardiovascular consequences of job stress as efforts to enhance control.

A Meta-Analysis Of The Effects Of Organizational Behavior Modification On Task Performance, 1975-95, Alexander D. Stajkovic, Fred Luthans

Department of Management: Faculty Publications

Results of a primary meta-analysis indicated a significant main effect of the organizational behavior modification (O.B. Mod.) approach on task performance (d. = .51; a 17 percent increase) and a significant treatment-by-study interaction. To account for within-group heterogeneity of effect sizes, we conducted a two-level theory-driven moderator analysis by partitioning the sample of studies first into manufacturing and service groups and then into seven classes of reinforcement interventions. Results indicated a stronger average effect of O.B. Mod. in manufacturing organizations, moderation by the type of contingent interventions, and "pairwise" differences among average effect sizes in both organizational types. The practical …

Salesforce Automation And The Adoption Of Technological Innovations By Salespeople: Theory And Implications, Madhavan Parthasarathy, Ravipreet S. Sohi

Department of Marketing: Faculty Publications

Focuses on factors that can influence the adoption and implementation of salesforce automation systems (SFA). Automatization of a salesforce; Information on the dual adoption concept; Discussion of the adoption of SFA systems by individual salespeople; Why the adoption of technological innovations is likely to be in industries operating in an oligopolistic environment; Concluding remarks on managerial implications.

This paper is concerned with the adoption of salesforce automation (SFA) systems by organizations and their salesforces. SFA systems consist of centralized database systems that can be accessed through a modem by remote laptop computers using special SFA software (which is often company …