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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Chapter 5.3, Problem 1E
Distribution of
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1. Choose a risk level for each of the states of nature (assign a probability
value to each).
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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.
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 5 Solutions
Statistical Reasoning for Everyday Life (5th Edition)
Ch. 5.1 - Normal Distribution. When we refer to a normal...Ch. 5.1 - Normal Shape. Draw a rough sketch of a normal...Ch. 5.1 - Area Under the Curve. What does the area under the...Ch. 5.1 - Normal Conditions. Briefly describe the four...Ch. 5.1 - Does It Make Sense? For Exercises 58, determine...Ch. 5.1 - Does It Make Sense? For Exercises 58, determine...Ch. 5.1 - Does It Make Sense? For Exercises 58, determine...Ch. 5.1 - Does It Make Sense? For Exercises 58, determine...Ch. 5.1 - What Is Normal? Identify the distribution in...Ch. 5.1 - What Is Normal? Identify the distribution in...
Ch. 5.1 - Normal Distributions. For each of the data sets in...Ch. 5.1 - Normal Distributions. For each of the data sets in...Ch. 5.1 - Normal Distributions. For each of the data sets in...Ch. 5.1 - Normal Distributions. For each of the data sets in...Ch. 5.1 - Normal Distributions. For each of the data sets in...Ch. 5.1 - Normal Distributions. For each of the data sets in...Ch. 5.1 - Normal Distributions. For each of the data sets in...Ch. 5.1 - Normal Distributions. For each of the data sets in...Ch. 5.1 - Body Temperature. Figure 5.8 shows a histogram for...Ch. 5.1 - Cotinine. The amount of nicotine absorbed by the...Ch. 5.1 - Departure Delay Times. Figure 5.10 on the next...Ch. 5.1 - MM Weights. Figure 5.11 shows a histogram for the...Ch. 5.1 - Areas and Relative Frequencies. Consider the graph...Ch. 5.1 - Areas and Relative Frequencies. Consider the graph...Ch. 5.1 - Estimating Areas. Consider the graph of the normal...Ch. 5.1 - Prob. 26ECh. 5.2 - The 68-95-99.7 Rule. What is the 68-95-99.7 rule...Ch. 5.2 - Applying the 68-95-99.7 Rule. For a normal...Ch. 5.2 - Standard Score. What is a standard score? How do...Ch. 5.2 - Percentiles. What is a percentile? Describe how...Ch. 5.2 - Does It Make Sense? For Exercises 58, determine...Ch. 5.2 - Does It Make Sense? For Exercises 58, determine...Ch. 5.2 - Does It Make Sense? For Exercises 58, determine...Ch. 5.2 - Does It Make Sense? For Exercises 58, determine...Ch. 5.2 - Using the 68-95-99.7 Rule. A test of depth...Ch. 5.2 - Using the 68-95-99.7 Rule. Pulse rates for adult...Ch. 5.2 - Applying the 68-95-99.7 Rule. In a study of facial...Ch. 5.2 - Applying the 68-95-99.7 Rule. Adult males have...Ch. 5.2 - IQ Scores. For Exercises 1324, sketch the normal...Ch. 5.2 - IQ Scores. For Exercises 1324, sketch the normal...Ch. 5.2 - IQ Scores. For Exercises 1324, sketch the normal...Ch. 5.2 - IQ Scores. For Exercises 1324, sketch the normal...Ch. 5.2 - IQ Scores. For Exercises 1324, sketch the normal...Ch. 5.2 - IQ Scores. For Exercises 1324, sketch the normal...Ch. 5.2 - IQ Scores. For Exercises 1324, sketch the normal...Ch. 5.2 - Prob. 20ECh. 5.2 - Prob. 21ECh. 5.2 - Prob. 22ECh. 5.2 - Prob. 23ECh. 5.2 - IQ Scores. For Exercises 1324, sketch the normal...Ch. 5.2 - Heights of Males. For Exercises 2536, sketch the...Ch. 5.2 - Heights of Males. For Exercises 2536, sketch the...Ch. 5.2 - Heights of Males. For Exercises 2536, sketch the...Ch. 5.2 - Heights of Males. For Exercises 2536, sketch the...Ch. 5.2 - Heights of Males. For Exercises 2536, sketch the...Ch. 5.2 - Heights of Males. For Exercises 2536, sketch the...Ch. 5.2 - Heights of Males. For Exercises 2536, sketch the...Ch. 5.2 - Heights of Males. For Exercises 2536, sketch the...Ch. 5.2 - Heights of Males. For Exercises 2536, sketch the...Ch. 5.2 - Heights of Males. For Exercises 2536, sketch the...Ch. 5.2 - Heights of Males. For Exercises 2536, sketch the...Ch. 5.2 - Heights of Males. For Exercises 2536, sketch the...Ch. 5.2 - Coin Weights. Consider the following table,...Ch. 5.2 - Pregnancy Lengths. Lengths of pregnancies are...Ch. 5.2 - SAT Scores. Based on data from the College Board,...Ch. 5.2 - GRE Scores. Assume that the scores on the Graduate...Ch. 5.2 - Body Temperatures. Assume that body temperatures...Ch. 5.2 - Spelling Bee Scores. At the district spelling bee,...Ch. 5.2 - Being a Marine. Heights of adult American males...Ch. 5.2 - Prob. 44ECh. 5.3 - Distribution of Means. What is a distribution of...Ch. 5.3 - Notation. This section includes formulas using the...Ch. 5.3 - Central Limit Theorem. What is the Central Limit...Ch. 5.3 - Central Limit Theorem. Briefly explain a major...Ch. 5.3 - Prob. 5ECh. 5.3 - Does It Make Sense? For Exercises 58, determine...Ch. 5.3 - Does It Make Sense? For Exercises 58, determine...Ch. 5.3 - Prob. 8ECh. 5.3 - Prob. 9ECh. 5.3 - Weights. Weights of adult males are normally...Ch. 5.3 - Twelve-Sided Dice and the Central Limit Theorem....Ch. 5.3 - Ten-Sided Dice and the Central Limit Theorem....Ch. 5.3 - Weights. In Exercises 1316, assume that weights of...Ch. 5.3 - Weights. In Exercises 1316, assume that weights of...Ch. 5.3 - Weights. In Exercises 1316, assume that weights of...Ch. 5.3 - Weights. In Exercises 1316, assume that weights of...Ch. 5.3 - Amounts of Cola. Assume that cans of cola are...Ch. 5.3 - Designing Strobe Lights. An aircraft strobe light...Ch. 5.3 - Designing Motorcycle Helmets. Engineers must...Ch. 5.3 - Redesign of Ejection Seats. When women first...Ch. 5.3 - Prob. 21ECh. 5.3 - Vending Machines. Currently, quarters have weights...Ch. 5.3 - Aircraft Safety Standards. Federal Aviation...Ch. 5.3 - Prob. 24ECh. 5 - For each of the following situations, state...Ch. 5 - Women have head circumferences that are normally...Ch. 5 - Assume that body temperatures of healthy adults...Ch. 5 - Which of the following statements are correct? a....Ch. 5 - Which of the following is likely to have a...Ch. 5 - Pulse Rates. In Exercises 310, assume that pulse...Ch. 5 - Pulse Rates. In Exercises 310, assume that pulse...Ch. 5 - Pulse Rates. In Exercises 310, assume that pulse...Ch. 5 - Pulse Rates. In Exercises 310, assume that pulse...Ch. 5 - Pulse Rates. In Exercises 310, assume that pulse...Ch. 5 - Pulse Rates. In Exercises 310, assume that pulse...Ch. 5 - Pulse Rates. In Exercises 310, assume that pulse...Ch. 5 - Pulse Rates. In Exercises 310, assume that pulse...
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