Statistical Reasoning for Everyday Life (5th Edition)
5th Edition
ISBN: 9780134494043
Author: Jeff Bennett, William L. Briggs, Mario F. Triola
Publisher: PEARSON
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Textbook Question
Chapter 4.3, Problem 1E
Variation Matters. Consider two grocery stores at which the
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Could you please answer this question using excel.Thanks
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.
Calculate the correlation coefficient r, letting Row 1 represent the x-values and Row 2 the y-values. Then calculate
it again, letting Row 2 represent the x-values and Row 1 the y-values. What effect does switching the variables have
on r?
Row 1
Row 2
13
149
25
36
41
60
62
78
S
205
122
195
173
133
197
24
Calculate the correlation coefficient r, letting Row 1 represent the x-values and Row 2 the y-values.
r=0.164 (Round to three decimal places as needed.)
S
24
Chapter 4 Solutions
Statistical Reasoning for Everyday Life (5th Edition)
Ch. 4.1 - Average. Define and distinguish among mean,...Ch. 4.1 - Outliers. What are outliers? Describe the effects...Ch. 4.1 - Average Confusion. Briefly describe at least two...Ch. 4.1 - Weighting. What is a weighted mean, and when is it...Ch. 4.1 - Does It Make Sense? For Exercises 59, determine...Ch. 4.1 - Does It Make Sense? For Exercises 59, determine...Ch. 4.1 - Mode. In an analysis of salaries paid to sales...Ch. 4.1 - Employment Data. A survey asked people their...Ch. 4.1 - Mean Wage. To find the mean wage of restaurant...Ch. 4.1 - Mean, Median, and Mode. In Exercises 1016, find...
Ch. 4.1 - Mean, Median, and Mode. In Exercises 1016, find...Ch. 4.1 - Mean, Median, and Mode. In Exercises 1016, find...Ch. 4.1 - Mean, Median, and Mode. In Exercises 1016, find...Ch. 4.1 - Mean, Median, and Mode. In Exercises 1016, find...Ch. 4.1 - Mean, Median, and Mode. In Exercises 1016, find...Ch. 4.1 - Mean, Median, and Mode. In Exercises 1016, find...Ch. 4.1 - Cell Phone Radiation. Listed below are...Ch. 4.1 - Alphabetic States. The states of Alabama, Alaska,...Ch. 4.1 - Outlier Coke. The contents of cans of regular...Ch. 4.1 - Raising Your Grade. Suppose you have scores of 80,...Ch. 4.1 - Raising Your Grade. Suppose you have scores of 60,...Ch. 4.1 - Comparing Data. In Exercises 2225, find the mean...Ch. 4.1 - Comparing Data. In Exercises 2225, find the mean...Ch. 4.1 - Comparing Data. In Exercises 2225, find the mean...Ch. 4.1 - Prob. 25ECh. 4.1 - Weighted Mean. Compute the weighte means in...Ch. 4.1 - Class Grade. Ryan is taking an advanced math class...Ch. 4.1 - GPA. One common system for computing a grade point...Ch. 4.1 - Prob. 29ECh. 4.1 - Prob. 30ECh. 4.1 - 31. Stockholder Voting. A small company has six...Ch. 4.1 - Weighted Mean. In Exercises 3235, find the mean of...Ch. 4.1 - Weighted Mean. In Exercises 3235, find the mean of...Ch. 4.1 - Weighted Mean. In Exercises 3235, find the mean of...Ch. 4.1 - Weighted Mean. In Exercises 3235, find the mean of...Ch. 4.1 - U.S. Population Center. Imagine taking a huge flat...Ch. 4.2 - Modes. Distinguish between a uniform distribution...Ch. 4.2 - Prob. 2ECh. 4.2 - Prob. 3ECh. 4.2 - Prob. 4ECh. 4.2 - Prob. 5ECh. 4.2 - Does It Make Sense? For Exercises 58, determine...Ch. 4.2 - Does It Make Sense? For Exercises 58, determine...Ch. 4.2 - Does It Make Sense? For Exercises 58, determine...Ch. 4.2 - Prob. 9ECh. 4.2 - Distributions. In Exercises 912, describe the...Ch. 4.2 - Distributions. In Exercises 912, describe the...Ch. 4.2 - Distributions. In Exercises 912, describe the...Ch. 4.2 - Baseball Salaries. In a recent year, the 868...Ch. 4.2 - Boston Rainfall. The daily rainfall amounts (in...Ch. 4.2 - Describing Distributions. For each distribution...Ch. 4.2 - Describing Distributions. For each distribution...Ch. 4.2 - Describing Distributions. For each distribution...Ch. 4.2 - Describing Distributions. For each distribution...Ch. 4.2 - Describing Distributions. For each distribution...Ch. 4.2 - Describing Distributions. For each distribution...Ch. 4.2 - Describing Distributions. For each distribution...Ch. 4.2 - Describing Distributions. For each distribution...Ch. 4.2 - Describing Distributions. For each distribution...Ch. 4.2 - Describing Distributions. For each distribution...Ch. 4.2 - Describing Distributions. For each distribution...Ch. 4.2 - Describing Distributions. For each distribution...Ch. 4.3 - Variation Matters. Consider two grocery stores at...Ch. 4.3 - Variation Measures. Briefly distinguish between...Ch. 4.3 - Quartiles and Percentiles. Briefly describe how...Ch. 4.3 - Standard Deviation. Describe the process of...Ch. 4.3 - Does It Make Sense? For Exercises 58, determine...Ch. 4.3 - Does It Make Sense? For Exercises 58, determine...Ch. 4.3 - Does It Make Sense? For Exercises 58, determine...Ch. 4.3 - Does It Make Sense? For Exercises 58, determine...Ch. 4.3 - Prob. 9ECh. 4.3 - Range and Standard Deviation. Exercises 916 each...Ch. 4.3 - Range and Standard Deviation. Exercises 916 each...Ch. 4.3 - Range and Standard Deviation. Exercises 916 each...Ch. 4.3 - Range and Standard Deviation. Exercises 916 each...Ch. 4.3 - Range and Standard Deviation. Exercises 916 each...Ch. 4.3 - Range and Standard Deviation. Exercises 916 each...Ch. 4.3 - Range and Standard Deviation. Exercises 916 each...Ch. 4.3 - Prob. 17ECh. 4.3 - Comparing Variation. In Exercises 1720, find the...Ch. 4.3 - Prob. 19ECh. 4.3 - Comparing Variation. In Exercises 1720, find the...Ch. 4.3 - Calculating Percentiles. A statistics professor...Ch. 4.3 - Calculating Percentiles. A data set consists of...Ch. 4.3 - Understanding Standard Deviation. The following...Ch. 4.3 - Understanding Standard Deviation. The following...Ch. 4.3 - Comparing Data Sets. For each of Exercises 2528,...Ch. 4.3 - Comparing Data Sets. For each of Exercises 2528,...Ch. 4.3 - Comparing Data Sets. For each of Exercises 2528,...Ch. 4.3 - Comparing Data Sets. For each of Exercises 2528,...Ch. 4.3 - Manufacturing. You are in charge of a...Ch. 4.3 - Prob. 30ECh. 4.3 - Prob. 31ECh. 4.3 - Prob. 32ECh. 4.4 - False Positive and False Negative. Professional...Ch. 4.4 - Positive Test Result. A professional soccer player...Ch. 4.4 - Prob. 3ECh. 4.4 - Prob. 4ECh. 4.4 - Does It Make Sense? For Exercises 58, determine...Ch. 4.4 - Does It Make Sense? For Exercises 58, determine...Ch. 4.4 - Does It Make Sense? For Exercises 58, determine...Ch. 4.4 - Does It Make Sense? For Exercises 58, determine...Ch. 4.4 - Prob. 9ECh. 4.4 - Passing Percentages. The table below shows the...Ch. 4.4 - Test Scores. The table below shows eighth-grade...Ch. 4.4 - Test Scores. Consider the following table...Ch. 4.4 - Prob. 13ECh. 4.4 - Prob. 14ECh. 4.4 - Basketball Records. Consider the following...Ch. 4.4 - Better Drug. Two drugs, A and B, were tested on a...Ch. 4.4 - Prob. 17ECh. 4.4 - Disease Test. Suppose a test for a disease is 80%...Ch. 4.4 - Prob. 19ECh. 4.4 - Drug Trials. (This problem is based on an example...Ch. 4.4 - HIV Risks. The New York State Department of Health...Ch. 4 - Chocolate Chips. Listed below are counts of the...Ch. 4 - Prob. 2CRECh. 4 - a. What is the standard deviation for a data set...Ch. 4 - When you add the earthquake magnitudes 2.45, 3.62,...Ch. 4 - Prob. 2CQCh. 4 - Prob. 3CQCh. 4 - Prob. 4CQCh. 4 - Prob. 5CQCh. 4 - Prob. 6CQCh. 4 - A histogram is constructed for a large set of...Ch. 4 - Prob. 8CQCh. 4 - Prob. 9CQCh. 4 - Identify the names of the components that...
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