B.10.Brosius

Table M - Construction Data Requirement
- sample of experience from grp of similarly sized risks (loss dist varies by size of risk)
- aggregate ELR (can use sample mean)
Table M - Insurance charge φ(r)
- area above r in Lee Diagram / total area
- when we need only 1, limit r to what we're interested in, φ(r) = avg diff btwn lim / unlim
Table M - Vertical slice method
- look risk by risk
- (+) natural approach - as data is presented
- (+) easiest to understand
- (+) quick for 1 entry ratio
- (-) need to repeat entire process for other r's
- (-) need to deal w each risk individually
Table M - Horizontal slice method
- look by layer
- (+) easiest to compute more than one ins charge
- (-) difficult to understand
- (-) initial prep work is needed in most cases
Table M - Construct w horizontal method
- φ(r) = width * % risks over
- φ(r) = r_i+1 - r_i * # risks over / total # risks
Table M - If μ ≠ sample mean
- theory: use sample mean
- practice: use μ and normalize table (divide all by φ(0))

Author

Exam8

166030

Card Set

B.10.Brosius

Description

Table M Construction

Updated

2012-08-14T20:51:18Z

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