Statistics
13th Edition
ISBN: 9780135820100
Author: MCCLAVE, James T., Sincich, Terry
Publisher: PEARSON
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Chapter 11.6, Problem 101UP
To determine
Explain the difference between E(y) and y for a given value of x.
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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 11 Solutions
Statistics
Ch. 11.1 - Why do we generally prefer a probabilistic model...Ch. 11.1 - What is the difference between a dependent...Ch. 11.1 - What is the line of means?
Ch. 11.1 - If a straight-line probabilistic relationship...Ch. 11.1 - 11.1 In each case, graph the line that passes...Ch. 11.1 - Give the slope and y-intercept for each of the...Ch. 11.1 - Prob. 7LMCh. 11.1 - Prob. 8LMCh. 11.1 - Prob. 9LMCh. 11.1 - Give the slope and y-intercept for each of the...
Ch. 11.1 - Measuring the moon’s orbit. A handheld digital...Ch. 11.1 - Prob. 12ACBCh. 11.1 - Prob. 13ACBCh. 11.1 - Prob. 14ACBCh. 11.2 - In regression, what is an error of prediction?
Ch. 11.2 - Prob. 16UPCh. 11.2 - Prob. 17UPCh. 11.2 - The accompanying table is used to make the...Ch. 11.2 - 11.15 Refer to Exercise 11.14. After the least...Ch. 11.2 - Prob. 20LMCh. 11.2 - Consider the following pairs of...Ch. 11.2 - Applet Exercise 11.1
Use the applet Regression by...Ch. 11.2 - Prob. 22ACBCh. 11.2 - Prob. 23ACBCh. 11.2 - Prob. 24ACBCh. 11.2 - New method for blood typing. Refer to the...Ch. 11.2 - Mongolian desert ants. Refer to the Journal of...Ch. 11.2 - Prob. 27ACBCh. 11.2 - Repair and replacement costs of water pipes. Pipes...Ch. 11.2 - Prob. 29ACICh. 11.2 - FCAT scores and poverty. In the state of Florida,...Ch. 11.2 - Sound waves from a basketball. Refer to the...Ch. 11.2 - 11.26 Sweetness of orange juice. The quality of...Ch. 11.2 - Prob. 33ACICh. 11.2 - Prob. 34ACICh. 11.2 - Prob. 35ACACh. 11.2 -
11.27 Forecasting movie revenues with Twitter....Ch. 11.3 - What are the four assumptions made about the...Ch. 11.3 - Prob. 38UPCh. 11.3 - Prob. 39LMCh. 11.3 - Suppose you fit a least squares line to 12 data...Ch. 11.3 - Refer to Exercises 11.18 and 11.21 (p. 597)....Ch. 11.3 - Prob. 42ACBCh. 11.3 - Prob. 43ACBCh. 11.3 - Prob. 44ACBCh. 11.3 - Prob. 45ACBCh. 11.3 - Prob. 46ACBCh. 11.3 - Prob. 47ACBCh. 11.3 - Prob. 48ACICh. 11.3 - FCAT scores and poverty. Refer to the Journal of...Ch. 11.3 - Prob. 50ACICh. 11.3 - Ideal height of your mate. Refer to the Chance...Ch. 11.3 - Prob. 52ACACh. 11.4 - In the equation E(y) = β0 + β1x, what is the value...Ch. 11.4 - What conditions are required for valid inferences...Ch. 11.4 - How do you adjust the p-value obtained from a...Ch. 11.4 - Prob. 56UPCh. 11.4 - Construct both a 95% and a 90% confidence interval...Ch. 11.4 - Consider the following pairs of...Ch. 11.4 - Consider the following pairs of...Ch. 11.4 - Congress voting on women’s issues. The American...Ch. 11.4 - Estimating repair and replacement costs of water...Ch. 11.4 - Prob. 62ACBCh. 11.4 - Lobster fishing study. Refer to the Bulletin of...Ch. 11.4 - 11.56 Beauty and electoral success. Are good looks...Ch. 11.4 - 11 57 Ranking driving performance of professional...Ch. 11.4 - FCAT scores and poverty. Refer to the Journal of...Ch. 11.4 - Sweetness of orange juice. Refer to Exercise...Ch. 11.4 - Ideal height of your mate. Refer to the Chance...Ch. 11.4 - Forest fragmentation study. Refer to the...Ch. 11.4 - Effect of massage on boxers. Refer to the British...Ch. 11.4 - Eye anatomy of giraffes. Giraffes are believed to...Ch. 11.4 - Pain empathy and brain activity, Empathy refers to...Ch. 11.4 - Characterizing bone with fractal geometry. In...Ch. 11.4 - The “name game.” Refer to the Journal of...Ch. 11.4 - Does elevation affect hitting performance in...Ch. 11.4 - 11.62 Spreading rate of spilled liquid. Refer to...Ch. 11.5 - True or False. The correlation coefficient is a...Ch. 11.5 - Describe the slope of the least squares line if
r...Ch. 11.5 - Explain what each of the following sample...Ch. 11.5 - True or False. A value of the correlation...Ch. 11.5 - Construct a scatterplot for each data set. Then...Ch. 11.5 - Calculate r2 for the least squares line in...Ch. 11.5 - Calculate r2 for the least squares line in...Ch. 11.5 - Use the applet Correlation by Eye to explore the...Ch. 11.5 - 11.71 RateMyProfessors.com. A popular Web site...Ch. 11.5 - 11.72 Last name and acquisition timing. Refer to...Ch. 11.5 - Taste-testing scales. Refer to the Journal of Food...Ch. 11.5 - 11.69 Going for it on fourth-down in the NFL Each...Ch. 11.5 - Lobster fishing study. Refer to the Bulletin of...Ch. 11.5 - 80215-11.5-90ACB
Redshifts of quasi-stellar...Ch. 11.5 - 11.79 Evaluation of an imputation method for...Ch. 11.5 - Salary linked to height. Are short people...Ch. 11.5 - Prob. 93ACICh. 11.5 - Eye anatomy of giraffes. Refer to the African...Ch. 11.5 - Do nice guys finish first or last? Refer to the...Ch. 11.5 - The “name game.” Refer to the Journal of...Ch. 11.5 - Effect of massage on boxing. Refer to the British...Ch. 11.5 - Child labor in diamond mines. The role of child...Ch. 11.5 - Plants that grow on Swiss cliffs. Refer to the...Ch. 11.5 - Pain tolerance study. A study published in...Ch. 11.6 - Explain the difference between y and E(y) for a...Ch. 11.6 - True or False. For a given x. a confidence...Ch. 11.6 - True or False. The greater the deviation between x...Ch. 11.6 - For each of the following, decide whether the...Ch. 11.6 - 11.85 In fitting a least squares line to n = 10...Ch. 11.6 - Consider the following pairs of...Ch. 11.6 - Consider the following pairs of measurements.
For...Ch. 11.6 - Refer to Exercise 11.107.
Using no information...Ch. 11.6 - 11.86 In business, do nice guys finish first or...Ch. 11.6 - Measuring the moon’s orbit. Refer to the American...Ch. 11.6 - Mongolian desert ants. Refer to the Journal of...Ch. 11.6 - Ranking driving performance of professional...Ch. 11.6 - Sweetness of orange juice. Refer to the simple...Ch. 11.6 -
Removal nitrogen from toxic wastewater. Highly...Ch. 11.6 - Game performance of water polo players. Refer to...Ch. 11.6 - Sound waves from a basketball. Refer to the...Ch. 11.6 - Ideal height of your mate. Refer to the Chance...Ch. 11.6 - The “name game.” Refer to the Journal of...Ch. 11.6 - 11.93 Spreading rate of spilled liquid Refer to...Ch. 11.6 - Forecasting movie revenues with Twitter. Refer to...Ch. 11.6 - 11 96 Life tests of cutting tools Refer to the...Ch. 11.7 - Impact of dropping ping-pong balls. The impact of...Ch. 11.7 - Prob. 123ACICh. 11.7 - 11.100 An MBA’s work-life balance. The importance...Ch. 11.7 - Legal advertising—does it pay? To gain a...Ch. 11 - Prob. 126UPCh. 11 - Give the general form of a straight-line model for...Ch. 11 - Outline the five steps in a simple linear...Ch. 11 - True or False. In simple linear regression, about...Ch. 11 - 11.101 In fitting a least squares line ton= 15...Ch. 11 - 11.102 Consider the following sample...Ch. 11 - 11.103 Consider the following 10 data...Ch. 11 - Arsenic in soil. In Denver, Colorado,...Ch. 11 - Wind turbine blade stress. Mechanical engineers at...Ch. 11 - 11.110 Sports news on local TV broadcasts. The...Ch. 11 - Predicting sale prices of homes. Real-estate...Ch. 11 - Baseball balling averages versus wins. Is the...Ch. 11 - Prob. 138ACBCh. 11 - Prob. 139ACBCh. 11 - English as a second language reading ability. What...Ch. 11 - Prob. 141ACBCh. 11 - New method of estimating rainfall. Accurate...Ch. 11 - Prob. 143ACICh. 11 - Prob. 144ACICh. 11 - Mortality of predatory birds. Two species of...Ch. 11 - Prob. 146ACICh. 11 - Prob. 147ACICh. 11 - Dance/movement therapy. In cotherapy, two or more...Ch. 11 - Prob. 149ACICh. 11 - Snow geese feeding trial. Botanists at the...Ch. 11 - Prob. 151ACACh. 11 - Prob. 152ACACh. 11 - Prob. 153CTC
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