Understanding Basic Statistics
7th Edition
ISBN: 9781305254060
Author: Charles Henry Brase, Corrinne Pellillo Brase
Publisher: Cengage Learning
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Chapter 11.3, Problem 7P
(a)
To determine
The level of significance and state the null and alternative hypotheses.
(b)
To determine
To find: The value of chi-square statistic for the sample, degrees of freedom and explain the assumptions about original distribution.
(c)
To determine
To find: The P-value of the sample statistic.
(d)
To determine
To explain: Whether the null hypothesis of independence will reject or fails to reject.
(e)
To determine
To explain: The conclusion in the context of application.
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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.
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.
From a sample of 26 graduate students, the mean number of months of work experience prior to entering an MBA program was 34.67. The national standard deviation is known to be18 months. What is a 90% confidence interval for the population mean?
Question content area bottom
Part 1
A
9090%
confidence interval for the population mean is
left bracket nothing comma nothing right bracketenter your response here,enter your response here.
(Use ascending order. Round to two decimal places as needed.)
Chapter 11 Solutions
Understanding Basic Statistics
Ch. 11.1 - Statistical Literacy In general, are chi-square...Ch. 11.1 - Statistical Literacy For chi-square distributions,...Ch. 11.1 - Statistical Literacy For chi-square tests of...Ch. 11.1 - Critical thinking In general, how do the...Ch. 11.1 - Critical Thinking Zane is interested in the...Ch. 11.1 - Critical Thinking Charlotte is doing a study on...Ch. 11.1 - Interpretation: Test of Homogeneity Consider...Ch. 11.1 - Interpretation: Test of Independence Consider...Ch. 11.1 - For Problems 9-19. please provide the following...Ch. 11.1 - For Problems 9-19, please provide the following...
Ch. 11.1 - For Problems 9-19, please provide the following...Ch. 11.1 - For Problems 9-19. please provide the following...Ch. 11.1 - For Problems 9-19. please provide the following...Ch. 11.1 - For Problems 9-19. please provide the following...Ch. 11.1 - For Problems 9-19. please provide the following...Ch. 11.1 - For Problems 9-19. please provide the following...Ch. 11.1 - Prob. 17PCh. 11.1 - Prob. 18PCh. 11.1 - Prob. 19PCh. 11.2 - Statistical Literacy For a chi-square...Ch. 11.2 - Statistical Literacy How are expected frequencies...Ch. 11.2 - Statistical Literacy Explain why goodness-of-fit...Ch. 11.2 - Critical Thinking When the sample evidence is...Ch. 11.2 - For Problems 5-14, please provide the following...Ch. 11.2 - For Problems 5-14, please provide the following...Ch. 11.2 - For Problems 5-14, please provide the following...Ch. 11.2 - For Problems 5-14, please provide the following...Ch. 11.2 - For Problems 5-14, please provide the following...Ch. 11.2 - Prob. 10PCh. 11.2 - Prob. 11PCh. 11.2 - For Problems 5-14, please provide the following...Ch. 11.2 - Prob. 13PCh. 11.2 - Prob. 14PCh. 11.3 - Statistical Literacy Docs the x distribution need...Ch. 11.3 - Prob. 2PCh. 11.3 - Prob. 3PCh. 11.3 - For Problems 3-11, please provide the following...Ch. 11.3 - For Problems 3-11. please provide the following...Ch. 11.3 - For Problems 3-11. please provide the following...Ch. 11.3 - Prob. 7PCh. 11.3 - For Problems 3-11, please provide the following...Ch. 11.3 - For Problems 3-11. please provide the following...Ch. 11.3 - Prob. 10PCh. 11.3 - Prob. 11PCh. 11.4 - Prob. 1PCh. 11.4 - Statistical Literacy What is the symbol used for...Ch. 11.4 - Prob. 3PCh. 11.4 - Statistical Literacy How does the t value for the...Ch. 11.4 - Prob. 5PCh. 11.4 - Using Computer Printouts Problems 5 and 6 use the...Ch. 11.4 - Prob. 7PCh. 11.4 - In Problems 7-12, parts (a) and (b) relate to...Ch. 11.4 - In Problems 7-12, parts (a) and (b) relate to...Ch. 11.4 - In Problems 7-12, parts (a) and (b) relate to...Ch. 11.4 - Prob. 11PCh. 11.4 - Prob. 12PCh. 11.4 - Prob. 13PCh. 11.4 - Prob. 14PCh. 11.4 - Prob. 15PCh. 11.4 - Prob. 16PCh. 11.4 - Prob. 17PCh. 11.4 - Prob. 18PCh. 11.4 - Prob. 19PCh. 11 - Statistical Literacy of the following random...Ch. 11 - Prob. 2CRCh. 11 - Prob. 3CRCh. 11 - Before you solve Problems 6-10, first classify the...Ch. 11 - Prob. 5CRCh. 11 - Before you solve Problems 6-10, first classify the...Ch. 11 - Before you solve Problems 6-10, first classify the...Ch. 11 - Prob. 8CRCh. 11 - Prob. 9CRCh. 11 - Prob. 10CRCh. 11 - Prob. 11CRCh. 11 - The Statistical Abstract of the United States...Ch. 11 - Prob. 1LCWPCh. 11 - Prob. 2LCWPCh. 11 - Prob. 3LCWPCh. 11 - Prob. 4LCWPCh. 11 - Prob. 1CRPCh. 11 - Prob. 2CRPCh. 11 - Prob. 3CRPCh. 11 - Prob. 4CRPCh. 11 - Prob. 5CRPCh. 11 - Prob. 6CRPCh. 11 - Prob. 7CRP
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