CAS Exam 8 Fall 2013, Question 12
Study guide: Exam 8
Given the following loss ratios for a set of five identical risks:
| Risk | Loss Ratio |
|---|---|
| 1 | 40% |
| 2 | 40% |
| 3 | 80% |
| 4 | 100% |
| 5 | 140% |
Assume that the sample loss ratio of 80% equals the expected loss ratio.
Construct a Table M showing the insurance charges for entry ratios from 0 to 2.0 in increments of 0.50.
Part a (2.5 points)
Answer this question and see the worked solution