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PCG » Topics » Tests

This excerpt taken from the PCG 10-K filed Feb 18, 2005.

Tests

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    Test 1:    The index value for the current year falls outside the UCL or LCL.

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    Test 2:    At least v1 consecutive annual index values fall above the CL or v2 consecutive annual index values fall below the CL. The actual values of v1 and v2 will be output from the bootstrap resampling procedures. The choices for v1 and v2 are designed to keep the probability of these events less than one percent.

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