Actuarial Notes

Exam DISC-DA Practice Question 30

Study guide: Exam DISC-DA

A scatter plot of claim severity against coverage limit for 300,000 claims is a solid black mass in its lower left corner, so the analyst cannot tell where most claims lie. Which change best restores what the plot can show?

  • A) Bin the points in two dimensions, such as hexagonal bins coloured by count
  • B) Enlarge the points so that each individual claim is easier to see
  • C) Replace the plot with a bar chart of the overall mean severity
  • D) Remove the claims in the dense corner as overplotted outliers

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