Elementary Statistics
12th Edition
ISBN: 9780321836960
Author: Mario F. Triola
Publisher: PEARSON
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Chapter 14.3, Problem 8BSC
To determine
To construct: The control chart for p.
Whether the process is within statistical control or not.
To identify: The requirement which is satisfied, if the process is in out-of-control state.
To explain: The result affecting the people.
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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 14 Solutions
Elementary Statistics
Ch. 14.2 - Product Specs Table 14-1 lists process data...Ch. 14.2 - Prob. 2BSCCh. 14.2 - Prob. 3BSCCh. 14.2 - Prob. 4BSCCh. 14.2 - Prob. 5BSCCh. 14.2 - Prob. 6BSCCh. 14.2 - Prob. 7BSCCh. 14.2 - Prob. 8BSCCh. 14.2 - Prob. 9BSCCh. 14.2 - Prob. 10BSC
Ch. 14.2 - Prob. 11BSCCh. 14.2 - Prob. 12BSCCh. 14.2 - Prob. 13BBCh. 14.2 - Prob. 14BBCh. 14.3 - Prob. 1BSCCh. 14.3 - Prob. 2BSCCh. 14.3 - Prob. 3BSCCh. 14.3 - Interpreting a Control Chart After constructing a...Ch. 14.3 - Prob. 5BSCCh. 14.3 - Prob. 6BSCCh. 14.3 - Prob. 7BSCCh. 14.3 - Prob. 8BSCCh. 14.3 - Prob. 9BSCCh. 14.3 - Prob. 10BSCCh. 14.3 - Control Charts for p. In Exercises 512, use the...Ch. 14.3 - Prob. 12BSCCh. 14.3 - Prob. 13BBCh. 14 - Prob. 1CQQCh. 14 - Prob. 2CQQCh. 14 - Prob. 3CQQCh. 14 - Prob. 4CQQCh. 14 - Prob. 5CQQCh. 14 - Prob. 6CQQCh. 14 - Prob. 7CQQCh. 14 - Prob. 8CQQCh. 14 - Prob. 9CQQCh. 14 - Examine the following p chart for defective...Ch. 14 - Prob. 1RECh. 14 - Prob. 2RECh. 14 - Prob. 3RECh. 14 - Energy Consumption. Exercises 15 refer to the...Ch. 14 - Prob. 5RECh. 14 - Prob. 1CRECh. 14 - Prob. 2CRECh. 14 - Prob. 3CRECh. 14 - Prob. 4CRECh. 14 - Prob. 5CRECh. 14 - Prob. 6CRECh. 14 - Prob. 7CRECh. 14 - Prob. 8CRECh. 14 - Prob. 9CRECh. 14 - Prob. 10CRECh. 14 - FROM DATA TO DECISION Critical Thinking: Are the...
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