CAS Exam 7 Spring 2014, Question 9
Study guide: Exam 7
Given the following output ($000) from a paid chain-ladder generalized linear model:
| Accident Year | Mean Unpaid | Standard Error | Coefficient Of Variation |
|---|---|---|---|
| 2008 | $63 | $35 | 0.556 |
| 2009 | 632 | 260 | 0.411 |
| 2010 | 2,130 | 641 | 0.301 |
| 2011 | 4,721 | 1,265 | 0.268 |
| 2012 | 7,011 | 2,825 | 0.403 |
| Total | 14,557 | 4,024 | 0.276 |
Use four diagnostic tests to evaluate the model for reasonableness.
Part a (2 points)
Answer this question and see the worked solution
Concepts tested
- Bootstrap
- Generalized Linear Model
- Coefficient of Variation
- ODP Bootstrap Model
- Reasonableness Testing
- Model Output