CAS Exam 8 Fall 2013, Question 13
Study guide: Exam 8
A cohort of policies has a loss elimination ratio of k = 0.1.
Part a (1 point)
Draw a graph with three curves showing the relationship between the Table L charge (y-axis) and the entry ratio (x-axis) for policies with premiums of $20,000; $500,000; and $1,000,000.
Part b (0.75 points)
Briefly explain three main features of the curves that describe their proper relationship to the axes and to each other.
Answer this question and see the worked solution