CAS Exam 7 Spring 2012, Question 9
Study guide: Exam 7
Part a (0.5 points)
Briefly describe two advantages that non-parametric smoothing models for claims run-off pattern estimates have over models based on parametric curves.
Part b (0.5 points)
Describe the role of the \theta parameter in the incremental claim predictor:
\eta_{ij} = s_{\theta_i}(i) + s_{\theta_j}(\log(j)) + s_{\theta_j}(j)
Part c (0.5 points)
Briefly describe the fit of the model from part b. above when \theta is at each extreme.
Part d (0.5 points)
Identify the resulting models when \theta is at each of its extremes.
No current syllabus covers this question; it is kept for the record.
Answer this question and see the worked solution