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B.10.Brosius
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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
ID
166030
Card Set
B.10.Brosius
Description
Table M Construction
Updated
2012-08-14T20:51:18Z
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