Introduction to Probability and Statistics
14th Edition
ISBN: 9781133103752
Author: Mendenhall, William
Publisher: Cengage Learning
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Chapter 2.2, Problem 2.3E
a.
To determine
To find:The value of
b.
To determine
To find: The value of
c.
To determine
To find:The
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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 2 Solutions
Introduction to Probability and Statistics
Ch. 2.2 - You are given n=5 measurements: 0, 5, 1, 1,3. Draw...Ch. 2.2 - Prob. 2.2ECh. 2.2 - Prob. 2.3ECh. 2.2 - Auto Insurance The cost of automobile insurance...Ch. 2.2 - Prob. 2.5ECh. 2.2 - Prob. 2.6ECh. 2.2 - Prob. 2.7ECh. 2.2 - Prob. 2.8ECh. 2.2 - Prob. 2.9ECh. 2.2 - Prob. 2.10E
Ch. 2.2 - Prob. 2.11ECh. 2.2 - Prob. 2.12ECh. 2.3 - You are given n=5 measurements: 2, 1, 1,3,5. a....Ch. 2.3 - Prob. 2.14ECh. 2.3 - Prob. 2.15ECh. 2.3 - Prob. 2.16ECh. 2.3 - Prob. 2.17ECh. 2.3 - Utility Bills in Southern CaliforniaThe monthly...Ch. 2.5 - Prob. 2.19ECh. 2.5 - Prob. 2.20ECh. 2.5 - A distribution of measurements is relatively...Ch. 2.5 - Prob. 2.22ECh. 2.5 - Prob. 2.23ECh. 2.5 - Packaging Hamburger Meat The data listed here are...Ch. 2.5 - Breathing Rates Is your breathing rate normal?...Ch. 2.5 - Prob. 2.26ECh. 2.5 - Social Security Numbers A group of70 students were...Ch. 2.5 - Prob. 2.28ECh. 2.5 - Prob. 2.29ECh. 2.5 - Prob. 2.30ECh. 2.5 - Timber Tracts To estimate the amount of lumber in...Ch. 2.5 - Prob. 2.32ECh. 2.5 - Prob. 2.33ECh. 2.5 - Prob. 2.34ECh. 2.5 - Prob. 2.35ECh. 2.5 - Prob. 2.36ECh. 2.5 - Prob. 2.37ECh. 2.5 - Prob. 2.38ECh. 2.5 - Prob. 2.39ECh. 2.7 - Prob. 2.40ECh. 2.7 - Find the five-number summary and the IQR forthese...Ch. 2.7 - Given the following data set: 2.3, 1.0, 2.1, 6.5,...Ch. 2.7 - Given the following data set: .23, .30, .35, .41,...Ch. 2.7 - Construct a box plot for these data and...Ch. 2.7 - Construct a box plot for these data and...Ch. 2.7 - If you scored at the 69th percentile on a...Ch. 2.7 - Mercury Concentration in DolphinsEnvironmental...Ch. 2.7 - Hamburger Meat The weights (in pounds) of the 27...Ch. 2.7 - Comparing NFL Quarterbacks How does Aaron Rodgers,...Ch. 2.7 - Presidential Vetoes The set of presidential vetoes...Ch. 2.7 - Survival Times Altman and Bland report the...Ch. 2.7 - Utility Bills in Southern California, again The...Ch. 2.7 - What’s Normal? again Refer to Exercise1.67 and...Ch. 2 - Raisins The number of raisins in each of...Ch. 2 - Prob. 2.55SECh. 2 - Prob. 2.56SECh. 2 - A Recurring IIIness Refer to Exercise 1.26 and...Ch. 2 - Prob. 2.58SECh. 2 - Prob. 2.59SECh. 2 - Tuna Fish, again Refer to Exercise 2.8. Theprices...Ch. 2 - Prob. 2.61SECh. 2 - Chloroform According to the EPA, Chloroform, which...Ch. 2 - Prob. 2.63SECh. 2 - Sleep and the College Student How muchsleep do you...Ch. 2 - Prob. 2.65SECh. 2 - Prob. 2.66SECh. 2 - Polluted Seawater Petroleum pollution in seasand...Ch. 2 - Prob. 2.68SECh. 2 - Prob. 2.69SECh. 2 - Prob. 2.70SECh. 2 - Prob. 2.71SECh. 2 - Prob. 2.72SECh. 2 - Prob. 2.73SECh. 2 - Prob. 2.74SECh. 2 - TV Commercials The mean duration oftelevision...Ch. 2 - Prob. 2.76SECh. 2 - Prob. 2.77SECh. 2 - Prob. 2.78SECh. 2 - Prob. 2.79SECh. 2 - Prob. 2.80SECh. 2 - Prob. 2.81SECh. 2 - Prob. 2.82SECh. 2 - Prob. 2.83SECh. 2 - Prob. 2.84SECh. 2 - Prob. 2.85SE
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