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Old 03-22-2013, 08:59 AM
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Default EOM3 Task 6 ridiculous results

Hi All,

I'm using the average results from the EOM3 Task 6 simulation results and I'm getting a replacement ratio of 250% for the Receptionist/Office worker using a 14/18 split rate formula. It seems to make sense in that this employee is very young.

Did anyone else run into numbers this high. If I'm right then the estimates to determine the split rate formulas in the previous task might be off.
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Old 03-22-2013, 09:09 AM
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Found a mistake in my calcs. However, it's still coming out at about 150%. Anyone agree with that?
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Old 04-15-2013, 10:27 PM
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Quote:
Originally Posted by gigarisch View Post
Found a mistake in my calcs. However, it's still coming out at about 150%. Anyone agree with that?
the assignment does not require you use the averages. I considered doing it since they gave some evidence that the fund return and inflation rate assumptions were pretty conservative. But instead of recalculating everything I just noted this in my memo.

You should consider scaling down the younger employees' contribution rates if you're getting numbers that high, or you can just ignore the averages.
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You have to take the third derivative of any of these stats to show Amoron is doing a good job.
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