CAS Exam 7 Spring 2013, Question 17
Study guide: Exam 9
Given the following data:
Policy Year Ultimate Loss ($000)
| Line of Business | 2008 | 2009 | 2010 | 2011 | 2012 |
|---|---|---|---|---|---|
| Personal Auto | 900 | 1,150 | 6,000 | 850 | 1,100 |
| Homeowners | 340 | 200 | 1,060 | 150 | 250 |
Part a (1 point)
Calculate the Pearson product-moment correlation between the personal auto loss data and the homeowners loss data.
Part b (1 point)
Calculate the Spearman rank correlation between the personal auto loss data and the homeowners loss data.
Part c (0.75 points)
Explain the difference between these two measures of correlation as applied to this data set.
Answer this question and see the worked solution