Path To College Mathematics
1st Edition
ISBN: 9780134654409
Author: Martin-Gay, K. Elayn, 1955-
Publisher: Pearson,
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Chapter D, Problem 23ES
To determine
The unknown length y .
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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
The number of initial public offerings of stock issued in a 10-year period and the total proceeds of these offerings (in
millions) are shown in the table. The equation of the regression line is y = 47.109x+18,628.54. Complete parts a and b.
455 679 499 496 378 68
157
58 200
17,942|29,215 43,338 30,221 67,266 67,461 22,066 11,190 30,707| 27,569
Issues, x
Proceeds,
421
y
(a) Find the coefficient of determination and interpret the result.
(Round to three decimal places as needed.)
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 D Solutions
Path To College Mathematics
Ch. D - Prob. 1ESCh. D - Prob. 2ESCh. D - Prob. 3ESCh. D - Prob. 4ESCh. D - Prob. 5ESCh. D - Prob. 6ESCh. D - Prob. 7ESCh. D - Prob. 8ESCh. D - Prob. 9ESCh. D - Prob. 10ES
Ch. D - Prob. 11ESCh. D - Prob. 12ESCh. D - Prob. 13ESCh. D - Prob. 14ESCh. D - Prob. 15ESCh. D - Prob. 16ESCh. D - Prob. 17ESCh. D - Prob. 18ESCh. D - Prob. 19ESCh. D - Prob. 20ESCh. D - Prob. 21ESCh. D - Prob. 22ESCh. D - Prob. 23ESCh. D - Prob. 24ESCh. D - Prob. 25ESCh. D - Prob. 26ESCh. D - Prob. 27ESCh. D - Prob. 28ESCh. D - Prob. 29ESCh. D - Prob. 30ESCh. D - Prob. 31ESCh. D - Prob. 32ESCh. D - Prob. 33ESCh. D - Prob. 34ESCh. D - Prob. 35ESCh. D - Prob. 36ESCh. D - Prob. 37ESCh. D - Prob. 38ESCh. D - Prob. 39ESCh. D - Prob. 40ESCh. D - Prob. 41ESCh. D - Prob. 42ESCh. D - Prob. 43ESCh. D - Prob. 44ESCh. D - Prob. 45ESCh. D - Prob. 46ESCh. D - Prob. 47ESCh. D - Prob. 48ES
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