Statistical Reasoning for Everyday Life (5th Edition)
5th Edition
ISBN: 9780134494043
Author: Jeff Bennett, William L. Briggs, Mario F. Triola
Publisher: PEARSON
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Chapter 10.1, Problem 3E
To determine
Explain briefly the procedure for constructing a 95% confidence interval around a sample
Explain about the difference between the procedures using the normal an t distribution.
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Let X represent the full height of a certain species of tree. Assume that X has a normal probability distribution with mean 203.8 ft and standard deviation 43.8 ft.
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Questions
An insurance company's cumulative incurred claims for the last 5 accident years are given
in the following table:
Development Year
Accident Year 0
2018
1 2 3 4
245 267 274 289 292
2019
255 276 288 294
2020
265 283 292
2021
263 278
2022
271
It can be assumed that claims are fully run off after 4 years. The premiums received for
each year are:
Accident Year Premium
2018
306
2019
312
2020
318
2021
326
2022
330
You do not need to make any allowance for inflation.
1. (a) Calculate the reserve at the end of 2022 using the basic chain ladder method.
(b) Calculate the reserve at the end of 2022 using the Bornhuetter-Ferguson method.
2. Comment on the differences in the reserves produced by the methods in Part 1.
Chapter 10 Solutions
Statistical Reasoning for Everyday Life (5th Edition)
Ch. 10.1 - t Distribution. What is the t distribution? What...Ch. 10.1 - Degrees of Freedom. How do you determine the...Ch. 10.1 - Prob. 3ECh. 10.1 - Hypothesis Test. Briefly summarize the procedure...Ch. 10.1 - Does It Make Sense? For Exercises 58, determine...Ch. 10.1 - Prob. 6ECh. 10.1 - Prob. 7ECh. 10.1 - Prob. 8ECh. 10.1 - Confidence Intervals. In Exercises 918, use the t...Ch. 10.1 - Confidence Intervals. In Exercises 918, use the t...
Ch. 10.1 - Elbow-to-Fingertip Length of Men. A simple random...Ch. 10.1 - Earthquake Epicenter Depths. A simple random...Ch. 10.1 - Hospital Costs with Seat Belts. A study was...Ch. 10.1 - Prob. 14ECh. 10.1 - Estimating Car Pollution. Each car in a sample of...Ch. 10.1 - Movie Lengths. Listed below are lengths (in...Ch. 10.1 - Prob. 17ECh. 10.1 - Prob. 18ECh. 10.1 - Hypothesis Tests. In Exercises 1928, test the...Ch. 10.1 - Prob. 20ECh. 10.1 - Hypothesis Tests. In Exercises 1928, test the...Ch. 10.1 - Prob. 22ECh. 10.1 - Hypothesis Tests. In Exercises 1928, test the...Ch. 10.1 - Hypothesis Tests. In Exercises 1928, test the...Ch. 10.1 - Prob. 25ECh. 10.1 - Prob. 26ECh. 10.1 - Prob. 27ECh. 10.1 - Prob. 28ECh. 10.2 - Two-Way Tables. What is a two-way table? What are...Ch. 10.2 - Hypotheses. When working with two variables in a...Ch. 10.2 - Prob. 3ECh. 10.2 - Prob. 4ECh. 10.2 - Does It Make Sense? For Exercises 58, determine...Ch. 10.2 - Does It Make Sense? For Exercises 58, determine...Ch. 10.2 - Does It Make Sense? For Exercises 58, determine...Ch. 10.2 - Does It Make Sense? For Exercises 58, determine...Ch. 10.2 - Prob. 9ECh. 10.2 - Understanding a Two-Way Table Hypothesis Test....Ch. 10.2 - Survey Results. In Exercises 1114, assume that a...Ch. 10.2 - Survey Results. In Exercises 1114, assume that a...Ch. 10.2 - Survey Results. In Exercises 1114, assume that a...Ch. 10.2 - Survey Results. In Exercises 1114, assume that a...Ch. 10.2 - Prob. 15ECh. 10.2 - Complete Hypothesis Test. In Exercises 1522, carry...Ch. 10.2 - Complete Hypothesis Test. In Exercises 1522, carry...Ch. 10.2 - Complete Hypothesis Test. In Exercises 1522, carry...Ch. 10.2 - Complete Hypothesis Test. In Exercises 1522, carry...Ch. 10.2 - Prob. 20ECh. 10.2 - Prob. 21ECh. 10.2 - Prob. 22ECh. 10.3 - ANOVA. What does ANOVA stand for? What is the...Ch. 10.3 - Prob. 2ECh. 10.3 - Variance in ANOVA. Describe and distinguish...Ch. 10.3 - Test Statistic F. What is the meaning of small and...Ch. 10.3 - Prob. 5ECh. 10.3 - Prob. 6ECh. 10.3 - Does It Make Sense? For Exercises 58, determine...Ch. 10.3 - Does It Make Sense? For Exercises 58, determine...Ch. 10.3 - Prob. 9ECh. 10.3 - Comparing Colleges. A researcher obtains random...Ch. 10.3 - Readability of Authors. Samples of Flesch-Kincaid...Ch. 10.3 - Fabric Flammability Tests in Different...Ch. 10.3 - Prob. 13ECh. 10.3 - Pulse Rates. A random sample of adult females is...Ch. 10.3 - Using Technology. In Exercises 1518, use software...Ch. 10.3 - Using Technology. In Exercises 1518, use software...Ch. 10.3 - Prob. 17ECh. 10.3 - Using Technology. In Exercises 1518, use software...Ch. 10 - In Exercises 13, use the following service times...Ch. 10 - In Exercises 13, use the following service times...Ch. 10 - In Exercises 13, use the following service times...Ch. 10 - Prob. 4CRECh. 10 - Prob. 1CQCh. 10 - As part of the results from the test described in...Ch. 10 - For the hypothesis test described in Exercise 1,...Ch. 10 - A simple random sample of 25 blood platelet counts...Ch. 10 - Prob. 5CQCh. 10 - Prob. 6CQCh. 10 - Prob. 7CQCh. 10 - If the hypothesis test of the claim described in...Ch. 10 - A two-way table, constructed from survey results,...Ch. 10 - Prob. 10CQ
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