% Generated by roxygen2: do not edit by hand
% Please edit documentation in R/chapter17_profit_analysis.R
\name{Pr_vector_disc}
\alias{Pr_vector_disc}
\title{Profit vector for a discrete profit-analysis model}
\usage{
Pr_vector_disc(
  V,
  G,
  i,
  r = 0,
  e = 0,
  q1,
  q2 = 0,
  b1,
  b2 = 0,
  s1 = 0,
  s2 = 0,
  p_tau = NULL,
  pre_contract_expense = 0
)
}
\arguments{
\item{V}{Vector of gross premium reserves \eqn{{}_tV^G} of length
\eqn{n+1}, including the issue-time reserve and the terminal reserve.}

\item{G}{Gross premium vector for policy years 1 through \eqn{n}.}

\item{i}{Interest-rate vector for policy years 1 through \eqn{n}.}

\item{r}{Percent-of-premium expense vector.}

\item{e}{Fixed expense vector.}

\item{q1}{First decrement probabilities, typically death.}

\item{q2}{Second decrement probabilities, typically surrender or lapse.
Defaults to 0.}

\item{b1}{Benefit vector for decrement 1.}

\item{b2}{Benefit vector for decrement 2. Defaults to 0.}

\item{s1}{Settlement-expense vector for decrement 1. Defaults to 0.}

\item{s2}{Settlement-expense vector for decrement 2. Defaults to 0.}

\item{p_tau}{Optional vector of in-force probabilities
\eqn{p_{x+t}^{(\tau)}}. If omitted, it is computed as
\eqn{1-q^{(1)}-q^{(2)}}.}

\item{pre_contract_expense}{Positive pre-contract expense amount. The
returned first element is \eqn{Pr_0 = -\text{pre\_contract\_expense}}.}
}
\value{
Numeric vector of length \eqn{n+1}.
}
\description{
Computes the Chapter 17 profit vector
\deqn{
\mathbf{Pr} = (Pr_0, Pr_1, \dots, Pr_n)
}
where \eqn{Pr_0} is the negative pre-contract expense and the yearly
expected profit values are calculated from the general discrete expression
in Equation (17.1).
}
\details{
This implementation allows for two decrements, typically death and
withdrawal/surrender.
}
\examples{
V <- c(0, 5.66, 6.17, 0)
qx <- c(0.00142, 0.00153, 0.00166)
Pr_vector_disc(
  V = V, G = 95, i = 0.06, r = 0.05, e = 10,
  q1 = qx, b1 = 50000, pre_contract_expense = 15
)

}
