An Introduction to Mathematical Statistics and Its Applications (6th Edition)
6th Edition
ISBN: 9780134114217
Author: Richard J. Larsen, Morris L. Marx
Publisher: PEARSON
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Chapter 6.4, Problem 15Q
To determine
To calculate: The value of p will the probability of committing a Type II error equal 0.05.
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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 6 Solutions
An Introduction to Mathematical Statistics and Its Applications (6th Edition)
Ch. 6.2 - State the decision rule that would be used to test...Ch. 6.2 - An herbalist is experimenting with juices...Ch. 6.2 - (a) Suppose H0:=0 is rejected in favor of H1:0 at...Ch. 6.2 - Company records show that drivers get an average...Ch. 6.2 - If H0:=0 is rejected in favor of H1:0, will it...Ch. 6.2 - A random sample of size 16 is drawn from a normal...Ch. 6.2 - Recall the breath analyzers described in Example...Ch. 6.2 - Calculate the P-values for the hypothesis tests...Ch. 6.2 - Suppose H0:=120 is tested against H1:120. If =10...Ch. 6.2 - As a class research project, Rosaura wants to see...
Ch. 6.2 - As input for a new inflation model, economists...Ch. 6.3 - Commercial fishermen working certain parts of the...Ch. 6.3 - Efforts to find a genetic explanation for why...Ch. 6.3 - Defeated in his most recent attempt to win a...Ch. 6.3 - Suppose H0:p=0.45 is to be tested against H1:p0.45...Ch. 6.3 - Recall the median test described in Example 5.3.2....Ch. 6.3 - Among the early attempts to revisit the death...Ch. 6.3 - What levels are possible with a decision rule of...Ch. 6.3 - Suppose H0:p=0.75 is to be tested against H1:p0.75...Ch. 6.4 - Recall the Math for the Twenty-First Century...Ch. 6.4 - Carry out the details to verify the decision rule...Ch. 6.4 - For the decision rule found in Question 6.2.2 to...Ch. 6.4 - Construct a power curve for the =0.05 test of...Ch. 6.4 - If H0:=240 is tested against H1:240 at the =0.01...Ch. 6.4 - Suppose n=36 observations are taken from a normal...Ch. 6.4 - If H0:=200 is to be tested against H1:200 at the...Ch. 6.4 - Will n=45 be a sufficiently large sample to test...Ch. 6.4 - If H0:=30 is tested against H1:30 using n=16...Ch. 6.4 - Suppose a sample of size 1 is taken from the pdf...Ch. 6.4 - Polygraphs used in criminal investigations...Ch. 6.4 - Prob. 12QCh. 6.4 - Prob. 13QCh. 6.4 - A sample of size 1 is taken from the pdf...Ch. 6.4 - Prob. 15QCh. 6.4 - Prob. 16QCh. 6.4 - Prob. 17QCh. 6.4 - Prob. 18QCh. 6.4 - Prob. 19QCh. 6.4 - Suppose that one observation from the exponential...Ch. 6.4 - Prob. 21QCh. 6.4 - Prob. 22QCh. 6.4 - Prob. 23QCh. 6.4 - Given the pdf fY(y;)=2y2,0y. Take a sample of size...Ch. 6.5 - Let k1,k2,...,kn be a random sample from the...Ch. 6.5 - Let y1,y2,...,y10 be a random sample from an...Ch. 6.5 - Let y1,y2,...,yn be a random sample from a normal...Ch. 6.5 - Let k denote the number of successes observed in a...Ch. 6.5 - Suppose a sufficient statistic exists for the...
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