CAS Exam 8 Fall 2014, Question 4
Study guide: Exam 8
One approach for estimating excess ratios by individual class in workers compensation insurance is to use a multi-dimensional credibility technique.
According to each of the three statistical considerations listed below, explain whether this technique is an improvement over estimating excess ratios by hazard group:
- i. Homogeneity
- ii. Credibility
- iii. Predictive Stability
Part a (1.5 points)
Answer this question and see the worked solution