CAS Exam MAS-II Fall 2019, Question 3

Study guide: Exam MAS-II

An actuary is constructing a credibility formula to apply to claim severity. To visualize the partial credibility, a plot showing credibility as a function of claim counts is created.

Determine which credibility method the actuary is using.

• A) Limited-fluctuation credibility with a full-credibility standard of 1300 claims.
• B) Limited-fluctuation credibility with a full-credibility standard of 800 claims.
• C) Limited-fluctuation credibility with \lambda_F = 541 and C_X = 1.053.
• D) Bühlmann credibility with EVPV = 0.266 and VHM = 0.016.
• E) Bühlmann credibility with EVPV = 0.844 and VHM = 0.008.

Answer this question and see the worked solution

Concepts tested

• Bühlmann Credibility
• Limited Fluctuation Credibility
• Partial Credibility
• Expected Value of Process Variance
• Variance of Hypothetical Means
• Full Credibility Standard

More questions from this set

• CAS Exam MAS-II Fall 2019, Question 2
• CAS Exam MAS-II Fall 2019, Question 4