Actuarial Notes

Exam DISC-DA Practice Question 27

Study guide: Exam DISC-DA

Exploring a personal auto severity file, an analyst sees in side-by-side box plots that one state's median severity is twice that of the others. Which follow-up best fits exploratory data analysis?

  • A) Check the state's claim count and whether another variable, such as coverage mix, explains it
  • B) Conclude at once that the state needs a severity relativity of 2.0 in the rating plan
  • C) Drop the state from the data as an outlier, so that it cannot distort the model
  • D) Replace the box plots with a pie chart showing the claim count in each state

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