CAS Exam 5 Spring 2014, Question 6
Study guide: Exam 5
An auto insurance company is designing a risk classification system. The actuary has determined that the number of hours a driver sleeps each night is a predictive rating variable. Recommend whether the company should include this variable in their risk classification system. Justify this recommendation with respect to four relevant considerations.
Part a (2.5 points)
Answer this question and see the worked solution