Understandable Statistics: Concepts and Methods
12th Edition
ISBN: 9781337119917
Author: Charles Henry Brase, Corrinne Pellillo Brase
Publisher: Cengage Learning
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Chapter 4, Problem 16CRP
a.
To determine
Find the value of
b.
To determine
Find the value of
c.
To determine
Find the value of
d.
To determine
Find the value of
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PEER REPLY 1:
Choose a classmate's Main Post and review their decision making process.
1. Choose a risk level for each of the states of nature (assign a probability
value to each).
2. Explain why each risk level is chosen.
3. Which alternative do you believe would be the best based on the maximum
EMV?
4. Do you feel determining the expected value with perfect information
(EVWPI) is worthwhile in this situation? Why or why not?
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.
You are provided with data that includes all 50 states of the United States. Your task is to draw a sample of: o 20 States using Random Sampling (2 points: 1 for random number generation; 1 for random sample) o 10 States using Systematic Sampling (4 points: 1 for random numbers generation; 1 for random sample different from the previous answer; 1 for correct K value calculation table; 1 for correct sample drawn by using systematic sampling) (For systematic sampling, do not use the original data directly. Instead, first randomize the data, and then use the randomized dataset to draw your sample. Furthermore, do not use the random list previously generated, instead, generate a new random sample for this part. For more details, please see the snapshot provided at the end.) Upload a Microsoft Excel file with two separate sheets. One sheet provides random sampling while the other provides systematic sampling. Excel snapshots that can help you in organizing columns are provided on the next…
Chapter 4 Solutions
Understandable Statistics: Concepts and Methods
Ch. 4.1 - Statistical Literacy List three methods of...Ch. 4.1 - Prob. 2PCh. 4.1 - Prob. 3PCh. 4.1 - Statistical Literacy What is the law of large...Ch. 4.1 - Prob. 5PCh. 4.1 - Prob. 6PCh. 4.1 - Prob. 7PCh. 4.1 - Prob. 8PCh. 4.1 - Interpretation An investment opportunity boasts...Ch. 4.1 - Interpretation A sample space consists of 4 simple...
Ch. 4.1 - Critical Thinking Consider a family with 3...Ch. 4.1 - Prob. 12PCh. 4.1 - Prob. 13PCh. 4.1 - Critical Thinking (a) Explain why 0.41 cannot be...Ch. 4.1 - Myers-Briggs: Personality Types Isabel Briggs...Ch. 4.1 - General: Roll a Die (a) If you roll a single die...Ch. 4.1 - Psychology: Creativity When do creative people get...Ch. 4.1 - Agriculture: Cotton A botanist has developed a new...Ch. 4.1 - Expand Your Knowledge: Odds in Favor Sometimes...Ch. 4.1 - Expand Your Knowledge: Odds Against Betting odds...Ch. 4.1 - Business: Customers John runs a computer software...Ch. 4.2 - Statistical Literacy If two events are mutually...Ch. 4.2 - Statistical Literacy If two events A and B are...Ch. 4.2 - Basic Computation: Addition Rule Given P(A) = 0.3...Ch. 4.2 - Basic Computation: Addition Rule Given P(A) = 0.7...Ch. 4.2 - Prob. 5PCh. 4.2 - Prob. 6PCh. 4.2 - Prob. 7PCh. 4.2 - Prob. 8PCh. 4.2 - Prob. 9PCh. 4.2 - Prob. 10PCh. 4.2 - Prob. 11PCh. 4.2 - Prob. 12PCh. 4.2 - Prob. 13PCh. 4.2 - Prob. 14PCh. 4.2 - Prob. 15PCh. 4.2 - Environmental: Land Formations Arches National...Ch. 4.2 - Prob. 17PCh. 4.2 - General: Roll Two Dice You roll two fair dice, a...Ch. 4.2 - Prob. 19PCh. 4.2 - Prob. 20PCh. 4.2 - Prob. 21PCh. 4.2 - General: Deck of Cards You draw two cards from a...Ch. 4.2 - General: Deck of Cards You draw two cards from a...Ch. 4.2 - Prob. 24PCh. 4.2 - Marketing: Toys USA Today gave the information...Ch. 4.2 - Prob. 26PCh. 4.2 - Prob. 27PCh. 4.2 - Prob. 28PCh. 4.2 - Prob. 29PCh. 4.2 - Survey: Medical Tests Diagnostic tests of medical...Ch. 4.2 - Survey: Lung/Heart In an article titled Diagnostic...Ch. 4.2 - Survey: Customer Loyalty Are customers more loyal...Ch. 4.2 - Franchise Stores: Profits Wing Foot is a shoe...Ch. 4.2 - Education: College of Nursing At Litchfield...Ch. 4.2 - Medical: Tuberculosis The state medical school has...Ch. 4.2 - Prob. 36PCh. 4.2 - Brain Teasers Assume A and B are events such that...Ch. 4.2 - Brain Teasers Assume A and B are events such that...Ch. 4.2 - Prob. 39PCh. 4.2 - Prob. 40PCh. 4.2 - Prob. 41PCh. 4.2 - Prob. 42PCh. 4.2 - Prob. 43PCh. 4.2 - Prob. 44PCh. 4.2 - Prob. 45PCh. 4.2 - Prob. 46PCh. 4.2 - Prob. 47PCh. 4.2 - Prob. 48PCh. 4.2 - Prob. 49PCh. 4.2 - Prob. 50PCh. 4.2 - Prob. 51PCh. 4.2 - Prob. 52PCh. 4.3 - Prob. 1PCh. 4.3 - Prob. 2PCh. 4.3 - Prob. 3PCh. 4.3 - Prob. 4PCh. 4.3 - Tree Diagram (a) Draw a tree diagram to display...Ch. 4.3 - Tree Diagram (a) Draw a tree diagram to display...Ch. 4.3 - Prob. 7PCh. 4.3 - Prob. 8PCh. 4.3 - Prob. 9PCh. 4.3 - Multiplication Rule for Counting A sales...Ch. 4.3 - Counting: Agriculture Barbara is a research...Ch. 4.3 - Counting: Outcomes You toss a pair of dice. (a)...Ch. 4.3 - Compute P5,2.Ch. 4.3 - Prob. 14PCh. 4.3 - Compute P7,7.Ch. 4.3 - Compute P9,9.Ch. 4.3 - Compute C5,2.Ch. 4.3 - Compute C8,3.Ch. 4.3 - Prob. 19PCh. 4.3 - Prob. 20PCh. 4.3 - Counting: Hiring There are three nursing positions...Ch. 4.3 - Counting: Lottery In the Cash Now lottery game...Ch. 4.3 - Counting: Sports The University of Montana ski...Ch. 4.3 - Counting: Sales During the Computer Daze special...Ch. 4.3 - Counting: Hiring There are 15 qualified applicants...Ch. 4.3 - Counting: Grading One professor grades homework by...Ch. 4.3 - Prob. 27PCh. 4.3 - Counting: Powerball The Viewpoint of this section,...Ch. 4 - Prob. 1CRPCh. 4 - Prob. 2CRPCh. 4 - Prob. 3CRPCh. 4 - Prob. 4CRPCh. 4 - Prob. 5CRPCh. 4 - Prob. 6CRPCh. 4 - Prob. 7CRPCh. 4 - Critical Thinking For a class activity, your group...Ch. 4 - Prob. 9CRPCh. 4 - Prob. 10CRPCh. 4 - Prob. 11CRPCh. 4 - Prob. 12CRPCh. 4 - Prob. 13CRPCh. 4 - Prob. 14CRPCh. 4 - Prob. 15CRPCh. 4 - Prob. 16CRPCh. 4 - Prob. 17CRPCh. 4 - Prob. 18CRPCh. 4 - Prob. 19CRPCh. 4 - Prob. 20CRPCh. 4 - Look at Figure 4-11, Whos Cracking the Books? (a)...Ch. 4 - Prob. 2LCCh. 4 - Prob. 1UT
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