CAS Exam 5 Fall 2014, Question 10
Study guide: Exam 5
An actuary performed an analysis of a products liability class plan using a Generalized Linear Model (GLM) for the first time on this book of business. The insureds are categorized by hazard classes A through G. The following graph shows claim frequency and exposure data by hazard class.
Part a (0.75 points)
Fully evaluate the predictive value of hazard class based on the information provided above.
Part b (1 point)
Briefly describe two data mining techniques and how each might be used to enhance a GLM multivariate classification analysis.
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