Statistical Techniques in Business and Economics, 16th Edition
16th Edition
ISBN: 9780078020520
Author: Douglas A. Lind, William G Marchal, Samuel A. Wathen
Publisher: McGraw-Hill Education
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Chapter 12, Problem 8E
a.
To determine
Give the null and the alternative hypotheses.
b.
To determine
Give the decision rule.
c.
To determine
Find the values of SST, SSE, and SS total.
d.
To determine
Find an ANOVA table.
e.
To determine
Obtain the conclusion regarding the null hypothesis.
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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 12 Solutions
Statistical Techniques in Business and Economics, 16th Edition
Ch. 12 - Steele Electric Products Inc. assembles cell...Ch. 12 - What is the critical F value when the sample size...Ch. 12 - Prob. 2ECh. 12 - Prob. 3ECh. 12 - Prob. 4ECh. 12 - Prob. 5ECh. 12 - Prob. 6ECh. 12 - Prob. 2SRCh. 12 - Prob. 7ECh. 12 - Prob. 8E
Ch. 12 - Prob. 9ECh. 12 - Prob. 10ECh. 12 - Prob. 3SRCh. 12 - Prob. 11ECh. 12 - The following are six observations collected from...Ch. 12 - Prob. 13ECh. 12 - Prob. 14ECh. 12 - Prob. 4SRCh. 12 - Prob. 15ECh. 12 - For exercises 15 and 16, conduct a test of...Ch. 12 - Prob. 17ECh. 12 - Prob. 18ECh. 12 - Prob. 5SRCh. 12 - Prob. 19ECh. 12 - Prob. 20ECh. 12 - Prob. 21ECh. 12 - Prob. 22ECh. 12 - Prob. 23CECh. 12 - Prob. 24CECh. 12 - Prob. 25CECh. 12 - Prob. 26CECh. 12 - In an ANOVA table, the MSE is equal to 10. Random...Ch. 12 - Prob. 28CECh. 12 - Prob. 29CECh. 12 - Prob. 30CECh. 12 - Prob. 31CECh. 12 - Prob. 32CECh. 12 - Prob. 33CECh. 12 - Prob. 34CECh. 12 - Prob. 35CECh. 12 - Prob. 36CECh. 12 - Prob. 37CECh. 12 - Prob. 38CECh. 12 - Shanks Inc., a nationwide advertising firm, wants...Ch. 12 - Prob. 40CECh. 12 - Prob. 41CECh. 12 - Prob. 42CECh. 12 - Prob. 43CECh. 12 - Prob. 44CECh. 12 - Prob. 45CECh. 12 - Prob. 46CECh. 12 - Prob. 47CECh. 12 - Prob. 48CECh. 12 - Prob. 49DECh. 12 - Prob. 50DECh. 12 - Prob. 51DECh. 12 - Prob. 1PCh. 12 - Prob. 2PCh. 12 - Prob. 3PCh. 12 - Prob. 4PCh. 12 - Prob. 5PCh. 12 - Prob. 6PCh. 12 - Prob. 7PCh. 12 - Prob. 1CCh. 12 - Prob. 2CCh. 12 - Prob. 1.1PTCh. 12 - The likelihood of rejecting a true null hypothesis...Ch. 12 - Prob. 1.3PTCh. 12 - Prob. 1.4PTCh. 12 - Prob. 1.5PTCh. 12 - Prob. 1.6PTCh. 12 - In a two-tailed test, the rejection region is...Ch. 12 - Prob. 1.8PTCh. 12 - Prob. 1.9PTCh. 12 - Prob. 1.10PTCh. 12 - Prob. 2.1PTCh. 12 - Prob. 2.2PTCh. 12 - Prob. 2.3PT
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