Abstract:
This disclosure describes a system and method for providing stability analysis of profitability calculations of target markets for goods or services. The system and method of this disclosure uses an internal experience database and external demographic databases. The system and method evaluates demographic data and calculates the risk associated with a variety of different goods or services. The system and method comprises a number of steps. First, a data acquisition module associates descriptor variables with different goods or services in a portfolio of goods or services. Second, a risk model module processes the various goods or services into distinct groups based upon specified characteristics. The risk model module also calculates risk values for the various goods or services and sorts the portfolio of goods or services into specified categories. Third, a profitability module calculates the net present value of each of the goods or services in the entire portfolio. Finally, a stability analysis module calculates the stability of the profitability for all of the goods or services in the distinct groups based upon specified characteristics.

Description:
CROSS REFERENCE TO RELATED APPLICATIONS  
         [0001]    This application claims the benefit of U.S. Provisional Application Serial No. 60/156,754 filed on Sep. 30, 1999, and entitled “System and Method for Stability Analysis of Profitability for Insurance Policies,” which is incorporated by reference herein in its entirety.  
         BACKGROUND OF THE INVENTION  
         [0002]    This disclosure relates to the profitability of goods or services and more specifically describes a system and method to estimate the stability of profitability of target markets for goods or services.  
           [0003]    Generally, estimating the profitability of, for example an insurance product, comprises the steps of deriving demographic variables from an insurance portfolio, applying a risk model to the insurance portfolio, and calculating the net present value of the insurance portfolio.  
           [0004]    Cost-conscious direct marketers use their knowledge about persons identified on a mailing list, an e-mail list, or phone list (i.e., a prospect) to identify the best prospects to receive mail. Usually, a marketer will use a set of descriptor variables about each prospect, such as for example, demographics and credit card ownership, to target good prospects (i.e., prospects that will find the mailing interesting). For example, the Rao and Steckel model includes acquiring a set of descriptor variables and conducting a knowledge engineering session to screen the variables. In this regard, a marketing committee may be appointed, and prior experience and intuition may be used to pick out the demographic variables most relevant to the response rate. A risk module scores and segments the entire portfolio of goods or services, for example insurance policies, into a number of categories that can be sorted from low risk to high risk.  
           [0005]    A profitability calculation can be performed utilizing the demographic variables acquired during data acquisition and figures of the market segments regarding risk. The value of the current risk is projected over the expected life of the good or service. In general, the traditional net present value calculation is [Net Present Value=Initial Investment Amount+(Expected Payoff at year X/(1+Discount Factor))].  
           [0006]    Currently, it is possible to estimate the profitability scores for each market segment; however, there is a problem of determining accuracy or stability of the profitability calculations of target markets for goods or services.  
           [0007]    Thus, there is a particular need for a system to estimate the stability, or accuracy, of profitability scores of target markets for different goods or services.  
         BRIEF SUMMARY OF THE INVENTION  
         [0008]    This disclosure describes a system and method for stability analysis of profitability for different types of target markets for goods or services. Briefly described, in architecture, the system can be implemented as follows. Data acquisition circuitry acquires a list of goods and services and attaching descriptor variables to the list of goods and services. A risk model logic selects a model for examining the list of goods or services and the descriptor variables. A profitability logic calculates a profitability for the list of goods or services and the descriptor variables examined with the model. Finally, a stability analysis logic calculates a stability of the profitability for the goods or services in the list of goods or services.  
           [0009]    This disclosure can also be viewed as describing a method for providing stability analysis of profitability for different types of goods or services. In this regard, the method can be broadly summarized by the following steps: acquiring a list of goods or services and attaching descriptor variables to the list of goods or services; examining the list of goods or services and the descriptor variables with a model; calculating a profitability for the list of goods or services and the descriptor variables examined with the model; and calculating the stability of the profitability for the goods or services in the list of goods or services.  
           [0010]    These goods or services can be, but are not limited to, insurance policies, retail goods, on-line merchandise, and other goods or services.  
           [0011]    Other features and advantages of this disclosure will become apparent to one with skill in the art upon examination of the following drawings and detailed description. It is intended that all such additional features and advantages be included herein within the scope of the present invention. 
       
    
    
     BRIEF DESCRIPTION OF THE DRAWINGS  
       [0012]    This disclosure can be better understood with reference to the following drawings. The components in the drawings are not necessarily to scale, emphasis instead being placed upon clearly illustrating the principles of the present invention. Moreover, in the drawings, like reference numerals designate corresponding parts throughout the several views.  
         [0013]    [0013]FIG. 1 is a block diagram illustrating an example of the profitability stability analysis system using an example of different insurance policies, situated within a computer readable medium, in a computer system.  
         [0014]    [0014]FIG. 2 is a block diagram illustrating an example of the profitability stability analysis system for an example of different insurance policies.  
         [0015]    [0015]FIG. 3 is a flow chart illustrating an example of the process flow of the system and method for stability analysis of profitability for an example of different types of insurance policies.  
         [0016]    [0016]FIG. 4 is a block diagram illustrating an example of different types of demographic data that can be utilized to construct risk and profitability models as shown in FIGS. 2 and 3.  
         [0017]    [0017]FIG. 5 is a block diagram of an example illustrating the use of regression trees  5  in risk modeling for an example of different insurance policies, as shown in FIGS. 2 and 3.  
         [0018]    [0018]FIG. 6 is a flow chart of an example of a profitability calculation process used in the system and method for stability analysis of profitability of the present invention, for an example of insurance policies, as shown in FIGS. 2 and 3.  
         [0019]    [0019]FIG. 7 is a flow chart of an example of the stability analysis process in the system and method for stability analysis of profitability of the present invention, for the example of insurance policies, as shown in FIGS. 2 and 3.  
         [0020]    [0020]FIG. 8 is a flow chart of an example of the process that calculates the net present value for each of the N-sample policies in the samples using replacement of the present invention, as shown in FIG. 7.  
         [0021]    [0021]FIG. 9 is table of an example of a result for the stability analysis process for a universe of Donnelley demographic groups using the example of insurance policies, as illustrated in FIG. 5. 
     
    
     DETAILED DESCRIPTION OF THE INVENTION  
       [0022]    Reference will now be made in detail to the description of the invention as illustrated in the drawings. Although the invention will be described in connection with these drawings, there is no intent to limit it to the embodiment or embodiments disclosed therein. On the contrary, the intent is to include all alternatives, modifications, and equivalents included within the spirit and scope of the invention as defined by the appended claims.  
         [0023]    As illustrated in FIG. 1, computer system  12  generally comprises a processor  21  and memory  31  (e.g., RAM, ROM, hard disk, CD-ROM, etc.) with an operating system  32 . The processor  21  accepts code and data from the memory  31  over the local interface  23 , for example, a bus(es). Direction from the user can be signaled by using input devices, for example but not limited to, a mouse  24  and a keyboard  25 . The actions input and resulting output are displayed on the display terminal  26 . A profitability stability analysis system  50  can access other computers and resources on a network utilizing modem or network card  27 .  
         [0024]    Also shown in FIG. 1 is a data acquisition process  60 , a risk model process  70 , a profitability process  80 , and a stability analysis process  100  in memory area  31 . Databases  33  are also shown to reside in memory area  31 . These components are herein described in further detail with regard to FIGS.  2 - 8 . The memory area  31  can be, for example but not limited to, an electronic, magnetic, optical, electromagnetic, infrared, or semiconductor system, apparatus, device, or propagation medium. More specific examples (a non-exhaustive list) of the memory area  31  include any one or more of the following: an electrical connection (electronic) having one or more wires, a portable computer diskette (magnetic), a random access memory (RAM) (magnetic), a read-only memory (ROM) (magnetic), an erasable programmable read-only memory (EPROM or Flash memory) (magnetic), an optical fiber (optical), and a portable compact disc read-only memory (CDROM) (optical).  
         [0025]    Illustrated in FIG. 2 is an example of the system and method for stability analysis of profitability of target markets for goods or services  50  of this disclosure. The following description of the system and method for stability analysis of profitability of target markets for goods or services  50  uses the example of insurance policies as the goods or services in the portfolio. The portfolio of goods or services can be, but are not limited to, insurance policies, coupons, mass mailing, inserts, and fliers.  
         [0026]    The system and method for stability analysis of profitability of target markets for goods or services  50 , includes the data acquisition process  60  that comprises the step of acquiring data (i.e., a portfolio of goods or services). The data acquisition process  60  employs a divide and conquer approach to handling massive amounts of demographic data. The demographic data is then input into the risk model process  70  that scores and segments the entire portfolio of goods or services into a number of categories. These categories include a number of different properties that allow sorting to be performed on a variety of different properties for each data type. An example of one property is the associated risk.  
         [0027]    The demographic data collected in the data acquisition process  60  and the risk data computed by the risk model process  70  are both input into the profitability process  80 . The profitability process  80  calculates the net present value of each good and service (i.e., policy) recorded in the data acquisition process  60 . Once the profitability or net present value of each good and service (i.e., policy) is computed by the profitability process  80 , the output is then input into the stability analysis process  100  to estimate the standard error of the net present value calculation for each of the categories determined in the risk model process  70 . The data acquisition process  60 , risk model process  70 , profitability process  80 , and stability analysis process  100  are hereindefined described in further detail with regard to FIGs.  3 - 8 .  
         [0028]    Illustrated in FIG. 3 is a flow chart of an example of a stability analysis of profitability of target markets for goods or services  50 . First, the stability analysis of profitability of target markets for goods or services  50  executes the data acquisition process  60  at step  51 . The data acquisition process  60  is hereindefined in further detail with regard to FIG. 4.  
         [0029]    The stability analysis of profitability of target markets for goods or services  50  next executes the risk model process  70  at step  52 . The risk model process  70  utilizes demographic data captured in the data acquisition process  60 . The risk model process  70  is hereindefined in further detail with regard to FIG. 5.  
         [0030]    The profitability process  80  is executed at step  53 . The profitability process  80  utilizes the demographic data acquired by the data acquisition process  60  and the risk analysis data created by the risk model process  70 . The profitability process  80  is hereindefined in further detail with regard to FIG. 6.  
         [0031]    The stability analysis process  100  is executed to determine the accuracy of the profitability data created by the profitability process  80 . The stability analysis process  100  is hereindefined in further detail with regard to FIGS. 7 &amp; 8. The stability analysis of profitability of target markets for goods or services  50  then exits at step  59 .  
         [0032]    Illustrated in FIG. 4 is a block diagram illustrating example types of demographic databases utilized to build the disclosed risk model. The data acquisition process  60  includes the step of acquiring goods or services related data. This step generally comprises attaching data description to goods or services. This disclosure will illustrate these concepts using an insurance example discussed throughout this disclosure. Using this example, the household or area level demographics is attached to a policy holder. First, policy holders dataset  35  records on a policy list are cross referenced with a universal file  60  (i.e., the entire data set) so that information regarding demographic variables associated with a policy holder&#39;s record are attached to the policy holder&#39;s record. Preferably, the policy holders dataset  35  records are cross-referenced with multiple universal files. For example, as shown in FIG. 4, the policy holders dataset  35  records can be broken down into groups using universal files available from various vendors, including for example Donnelley  36 , Census Tract, and Block Group (“CTBG”)  37  and ZIPS  38 . If multiple universal files are used, preferably the policy holders dataset  35  records are broken down in to subgroups.  
         [0033]    Preferably, the policy holders dataset  35  record is attached with individual  61 , household  67  and zip9 area  63  level demographic information, which are useful for identifying segments.  
         [0034]    The data acquisition process  60  next comprises the step of variably selecting descriptor variables. Generally, it is desirable to use as few variables as possible in the presence of noise. This is often referred to as the “principle of parsimonious.” There may be combinations (linear or nonlinear) of variables that are irrelevant to the underlying process that, due to noise in data, appear to increase the prediction accuracy. Preferably, variables with the greater discrimination power in response prediction are selected. Generally, descriptor variables are selected using the misclassification rate as a measure of the discrimination power of each input variable given the same size of tree it constructs. The descriptor variables are disclosed by the method for modeling mail response rates described in commonly assigned and co-pending U.S. patent application entitled “METHOD FOR MODELING MARKET RESPONSE RATES”, Attorney Docket Number RD-26,419, Ser. No. 09/396,599 filed on Sep. 15, 1999, herein incorporated by reference.  
         [0035]    Illustrated in FIG. 5 is an example of a risk model created during the risk model process  70  with regard to the insurance policies example. One example of a risk model applied by the risk model process  70  is CART. CART is a well known statistical algorithm of regressive trees and is used for risk modeling. The idea behind the regression trees is to filter out potentially high risk goods or services (i.e., insurance policies) up front by partitioning policies into a number of categories such that each category is homogenous in the sense of risk. In addition, the risk model CART process also attaches to each category a unique set of goods or services (i.e., policy) characteristics. As a result, the set of goods or services (i.e., insurance policy) characteristics can be used as filtering criteria in the future.  
         [0036]    An example is illustrated in FIG. 5. The real number in each node represents a weighted, expected risk factor for the goods or services. In the insurance policies example utilized in this disclosure, the weighted, expected risk factor is constructed utilizing the formula of A/Ew. “A” represents the actual claim amount and “Ew” is the weighted, expected claim for a specific category. A low A/Ew means a low risk policy while a high A/Ew indicates a high-risk policy. As previously discussed, FIG. 5 is an insurance policy example demonstrating the characteristics of Donnelley demographic data utilizing the properties of age, marital status, and income level of the head of household.  
         [0037]    In this example in FIG. 5, 490K real cases from the long-term care policy and claims experience files are used. The cut off date for the file was February 1997. The policies included the actual and expected claims costs for these 490K cases. The idea was to take existing policyholders and their “performance measures” defined by their A/Ew ratio from the experience system, and extend the policy variables adding Donnelley household demographics. The results of the model scoring was then to be applied to the current example mail database to provide a mechanism to target demographic groups that would increase the profits while decreasing the risks of insuring a population more likely to have higher than expected claims cost. The 490K cases in the current example have household level demographic data attached to the file. In this example, one is able to match and attach demographic data to 295K of the cases. This example uses CART to analyze this data to build filters that would group the policy holders into branches or bins on the basis of their demographic data in such a way as to provide the best differentiation of morbidity, wherein morbidity is defined as the sum of actual claims cost divided by expected claims cost.  
         [0038]    These 295K cases as a whole had a 58% morbidity, which is considered to be very favorable. There remained a significant difference among the subgroups. The CART analysis resulted in the identification of 8 clusters. Four of these clusters had low morbidity and were grouped into one subgroup. This reduced the number of groups to five. The five groups had 40%, 50%, 65%, 100%, and 181% morbidity. Similarly, CTGB and ZIP5 risk models can also be built utilizing the CART methodology.  
         [0039]    Shown in item  71  is an example of a Donnelley risk model where the weighted, expected risk for the total amount of policyholders is 0.58. That category is further broken up into the weighted, expected risk where the head of household is less than 64 years old. The risk model process  70  further determines the income level and associated, weighted, expected risk where the head of household is greater than 64 years old in blocks  74  and  75 . Respectively, the expected weighted risk for heads of household greater than 64 and with a high-income level of 0.395, as illustrated in item  74 . The weighted expected risk for a head of household greater than 64 with a low income level is equal to 0.578, as illustrated in block  75 . Further illustrated is the weighted expected risk amount of 0.502 where the head of household is greater than 64 and has a low-income level and resides in a location would be classified as urban and suburban. The weighted expected risk amount for a head of household greater than 64 with low-income and residing in a rural location are illustrated as item  79  and are equal to 0.650.  
         [0040]    Illustrated in FIG. 6 is an example of one implementation of the formula for calculating the profitability of a portfolio of goods or services (i.e., a set of insurance policies). The profitability calculation in the past is defined as:  
           NPV=C 0+[ C 1/(1+ r )] 
         [0041]    where C0 is the investment at time 0; C1 is the expected payoff at time 1; and r is the discount factor.  
         [0042]    In the present invention, the NPV is defined as:  
           NPV=ΣP−ΣE −(Σ C )× A /( Ew )  
         [0043]    where P is the premium (i.e., revenue); E is the expected nominal cost; and C is the goods or services (i.e., claim) cost. In essence, the above equation gives the net income as being the difference of the profit and the weighted expected risk. Note that this summation is across all the policies in a specific segment. Also note that the entire premium had been discounted, but no acquisition costs have been discounted before entering the equation. As a result, there is a profitability score for each category of the universal files.  
         [0044]    As noted above, FIG. 6 is a flow chart of an example of a profitability process  80  that can be utilized in the present invention. The profitability process  80  is first initialized at step  81 . Next, the specific segment is selected at step  82 . In the insurance policies example utilized in this disclosure, this specific segment indicates the characteristic required in an insurance policy for that insurance policy to be included in the summation across all insurance policies in that segment.  
         [0045]    Once the specific segment is selected at step  82 , the profitability calculation process  80  calculates the premium sum of all the policies in the selected specific segment at step  83 . Next, the profitability calculation process  80  calculates the claim cost sum of all the policies within the selected specific segment at step  85 . The profitability calculation process  80  calculates the sum of all policies&#39; weighted expected risk in the specific segment selected at step  86 .  
         [0046]    Once the sum of all the premiums, expected nominal cost, claim cost, and weighted, expected risk summations are calculated in steps  83  through  86 , the profitability calculation process  80  then calculates the net present value for all the policies within the selected specific segment at step  87 . This net present value for all policies in the specific segment is then output at step  88 .  
         [0047]    The profitability calculation process  80  then determines if there are not more segments to be processed at step  91 . If more segments are to be processed, the profitability calculation process  80  returns to step  82  to select the next specific segment to be processed. If it is determined that there are no more segments to be processed at step  91 , the profitability calculation process then exits at step  99 .  
         [0048]    Illustrated in FIG. 7 is a flow chart of an example for the stability analysis process  100  of the present invention, using the insurance policies example. The stability analysis process  100  is performed in an attempt to determine the accuracy of the data summaries. The stability analysis process is suitable for answering statistical interference that is far too complicated for traditional statistical analysis. The stability analysis process  100  is based upon the idea of sampling with replacement. Specifically, the stability analysis process  100  simulates the distribution of statistical estimates by repeatedly sampling groups of policies with replacement. The stability analysis process  100  estimates the net present value standard error utilizing the following method.  
         [0049]    The stability analysis process  100  is first initialized at step  101 . Next, the risk model to be utilized by the stability analysis process  100  is selected at step  102 . It is contemplated by the inventors that the risk models are, for example but not limited to, the Donnelley, Census Tract and Block Group (CTBG) and ZIP5 risk models. At step  103 , the specific segment to be processed within the risk model is selected.  
         [0050]    The stability analysis process  100  then selects “N” Bootstrap samples of policies, using sampling with replacement at step  104 . Bootstrap samples are known in the art as a computer-based method that is suitable for answering statistical interference questions that are far too complicated for traditional statistical analysis. Bootstrap samples are based upon the idea of sampling with replacement. In particular, bootstrap samples simulate the distribution of statistical estimates by repeatedly sampling with replacement.  
         [0051]    At step  105 , the calculation of the net present value for each of the “N” Bootstrap samples of policies using sampling with replacement. This calculation is hereindefined in further detail with regard to FIG. 8. The stability analysis process  100  then determines if all the Bootstrap samples of policies in the selected segment have been processed at step  106 . If all the policies in the selected segment have not been processed, the stability analysis process  100  returns to step  104  to select the next segment to be processed.  
         [0052]    If it is determined at step  106  that all the Bootstrap samples of policies within a specified segment have been processed, the stability analysis process  100  calculates the standard deviation at step  107 . The standard deviation calculated is for all of the net present values determined in step  105 . Next at step  108 , the stability analysis process  100  calculates the mean net present value for all of the net present values in the Bootstrap samples of policies in the specified segment. At step  111 , the stability analysis process  100  outputs the calculated segment data. This data includes but is not limited to the segment number, the net present value of all the policies within a specified segment, the standard deviation of the mean net present value, and the frequency or number of policies in the specified segment.  
         [0053]    At step  112 , stability analysis process  100  determines if all of the segments in the current risk model have been processed. If there are more segments to be processed in the current risk model, the stability analysis process  100  returns to step  103  to select the next specific segment to be processed. If all the segments have been completed in the current risk model, the stability analysis process  100  then determines if all of the risk models have been processed at step  113 . If it is determined that not all the risk models have been processed, the stability analysis process  100  returns to step  102  and selects the next risk model to be processed. If all risk models have been processed, the stability analysis process  100  exits at step  119 .  
         [0054]    Illustrated in FIG. 8 is the process that calculates the net present value for policies using the insurance policies example in the segment. First, the calculate net present value process  120  is initialized at step  121 . Next, the calculate net present value process  120  selects the policies in the “N” sample of policies at step  122 .  
         [0055]    The calculate net present value process  120  calculates the premium sum for all the policies in the “N” sample of policies at step  123 . At step  124 , the expected nominal cost sum for the policies in the “N” sample of policies is calculated. The claim cost sum for the policies in the “N” sample of policies is calculated at step  125 .  
         [0056]    The calculate net present value process  120  then calculates the weighted expected risk value for the policies in the “N” sample of policies at step  126 . The weighted expected risk is calculated by using the actual claim amount for policies in a predetermined time period. This amount is divided by the value determined by the weighted expected claim amount for each policy in the predetermined time period divided by the normalization constant 0.72858. The calculate net present value process  120  then utilizes the previous calculations to calculate the net present value for the policies within the “N” sample of policies at step  127 . The net present value for the policies in the “N” sample of policies is then output at step  128 .  
         [0057]    The calculate net present value process  120  then determines if all “N” samples of policies have been processed at step  131 . If there are more samples of policies to be processed in the “N” sample of policies, the calculate net present value process  120  then returns to repeat steps  122  through  131 . If it is determined at step  131  that all “N” samples of policies have been processed, the calculate net present value process  120  then exits at step  139 .  
         [0058]    Illustrated in FIG. 9, is a result for the stability estimates of the insurance policies example for a universe of Donnelley demographic groups used in FIG. 5. The segments are arranged from left to right as shown in FIG. 5. Therefore, segment  5  in table  150  represents the left-most category  77  with an A/Ew=1.810. This is a high-risk segment as indicated in its mean of NPV=(−$10,737,789) and a standard deviation of the mean of the net present value=$3,673,458. One useful bit of information coming from table  150  is the standard deviation. The standard deviation can be used to explain the level of variability in the group and establish a confidence interval to assign individuals to that category correctly. The values from the mean of plus and minus three standard deviations explain 99 percent of the variability. This is used to determine if two segments are too close, i.e., whether they are at least three times the standard deviation away from one another.  
         [0059]    If the segments are at least three times the standard deviation away from one another, it can be concluded that the segments (i.e., buckets) generated by a particular risk model are fairly stable in their means. In other words, it provides the standard error of the statistics of interest, (i.e., that mean of the NPV for each segment of the risk models).  
         [0060]    An example comparison of segments three (3) and four (4) will now be made. In segment 4, the mean of the net present value is $15,954,506, and a standard deviation of $2,052,418. Three times the standard deviation in segment 4 is equal to $6,157,254. Plus or minus three times the standard deviation of the mean at the net present value is equal to $22,111,760 and $9,797,252. These values are then compared with segment 3 having a mean of the net present value equal to $16,138,489 and a standard deviation of $914,172. Plus or minus three times the standard deviation of segment 3 having the mean of the net present value is equal to $17,052,661 and $15,224, 317. In this example, the range covered by three times the standard deviation of the mean of the net present value for segment 4 completely envelopes three times the standard deviation of the mean of the net present value for segment 3. This would lead one to the conclusion that segments three and four are too close and therefore should be merged.  
         [0061]    Another example of an application for the stability analysis for profitability of goods or services  50  of the present invention is in the field of retail sales. The stability analysis for profitability of goods or services system  50  can be used to determine the profitability of target markets for goods or services.  
         [0062]    The method and system for the stability analysis for profitability of target markets for goods or services  50  comprise an ordered listing of executable instructions for implementing logical functions. The ordered listing can be embodied in any computer-readable medium for use by or in connection with an instruction execution system, apparatus, or device, such as a computer-based system, processor-containing system, or other system that can fetch the instructions from the instruction execution system, apparatus, or device, and execute the instructions. In the context of this document, a “computer-readable medium” can be any means that can contain, store, communicate, propagate, or transport the program for use by or in connection with the instruction execution system, apparatus, or device.  
         [0063]    The computer readable medium can be, for example but not limited to, an electronic, magnetic, optical, electromagnetic, infrared, or semiconductor system, apparatus, device, or propagation medium. More specific examples (a non-exhaustive list) of the computer-readable medium would include the following: an electrical connection (electronic) having one or more wires, a portable computer diskette (magnetic), a random access memory (RAM) (magnetic), a read-only memory (ROM) (magnetic), an erasable programmable read-only memory (EPROM or Flash memory) (magnetic), an optical fiber (optical), and a portable compact disc read-only memory (CDROM) (optical).  
         [0064]    Note that the computer-readable medium could even be paper or another suitable medium upon which the program is printed, as the program can be electronically captured via, for instance, optical scanning of the paper or other medium, then compiled, interpreted or otherwise processed in a suitable manner if necessary, and then stored in a computer memory.  
         [0065]    The foregoing description has been presented for purposes of illustration and description. It is not intended to be exhaustive or to limit the invention to the precise forms disclosed. Obvious modifications or variations are possible in light of the above teachings. The flow charts of this disclosure show the architecture, functionality, and operation of a possible implementation of the register usage optimization compilation and translation system. In this regard, each block represents a module, segment, or portion of code, which comprises one or more executable instructions for implementing the specified logical function(s). It should also be noted that in some alternative implementations, the functions noted in the blocks may occur out of the order noted in the figures, or for example, may in fact be executed substantially concurrently or in the reverse order, depending upon the functionality involved.  
         [0066]    The system and methods discussed were chosen and described to provide the best illustration of the principles of the invention and its practical application to enable one of ordinary skill in the art to utilize the invention in various embodiments and with various modifications as are suited to the particular use contemplated. All such modifications and variations are within the scope of the invention as determined by the appended claims when interpreted in accordance with the breadth to which they are fairly and legally entitled.