New Study Findings from University of Economics in Bratislava Illuminate Research in Statistics and Economy (Use of Markov Chain Simulation in Long Term Care Insurance): Mathematics – Statistics and Economy

Insurance Daily News

2023 JAN 04 (NewsRx) -- By a News Reporter-Staff News Editor at Insurance Daily News -- A new study on statistics and economy is now available. According to news originating from Bratislava, Slovakia, by NewsRx correspondents, research stated, “The aim of this paper is to present the use of simulations of non-homogeneous Markov chains in discrete time in the context of the problem of long-term care delivery.”

Our news reporters obtained a quote from the research from University of Economics in Bratislava: “The object of investigation is to model the distribution of clients into different states during specified time steps, then to estimate the average time a client stays in a given state, as well as to estimate the insurance premiums. Within the use of the Monte Carlo simulation method, the focus is on providing approaches that ensure more accurate results in the context of the number of simulations performed. Based on the statistical processing of the data obtained from the simulations, it is possible to obtain the information necessary for the provision of resources for the provision of health care and for the determination of the aforementioned premiums.”

According to the news editors, the research concluded: “For the implementation of the above techniques and their graphical presentation available packages such as markovchain, ggplot2 or custom code created using the R language were used.”

For more information on this research see: Use of Markov Chain Simulation in Long Term Care Insurance. Statistika: Statistics and Economy Journal, 2022,102(4):409-425. (Statistika: Statistics and Economy Journal - http://www.czso.cz/statistika_journal). The publisher for Statistika: Statistics and Economy Journal is Czech Statistical Office.

A free version of this journal article is available at https://doi.org/10.54694/stat.2022.20.

Our news journalists report that more information may be obtained by contacting Vladimir Mucha, University of Economics in Bratislava, Bratislava, Slovakia. Additional authors for this research include Ivana Faybikova, Ingrid Krcova.