Defined terms for the annuity market and lifetime income landscape.
Sensitivity analysis is an analytical technique that measures how much a model's output changes when a single input is varied while the other inputs are held constant.
Standard deviation is a measure of how much the individual values in a data set typically vary from their average, expressed in the same units as the values themselves.
Stochastic modeling is a way of projecting future outcomes in which one or more inputs are drawn from probability distributions and the model produces a range of results across many simulated paths, rather than a single result.
Stress testing is an analytical technique that runs a model under adverse input conditions selected to test whether an arrangement or portfolio can withstand specific severe scenarios.
Term structure of interest rates is the pattern of yields observed across bonds of different maturities at a given point in time, typically summarized visually by the yield curve.
