CAS Exam MAS-II Spring 2019, Question 4
Study guide: Exam MAS-II
Below is a table with the physical damage claim experience of commercial auto fleets for three insured companies for the most recent period.
| Company | Number of vehicles | Mean claim amount per vehicle | Standard deviation of claim amount |
|---|---|---|---|
| X | 150 | 3130.20 | 579.62 |
| Y | 272 | 2278.53 | 139.10 |
| Z | 511 | 2950.50 | 472.08 |
Company X will have 175 vehicles in its fleet in the next period.
Calculate the Bühlmann credibility prediction of Company X's aggregate claim amount for the next period.
- A) Less than 500,000
- B) At least 500,000, but less than 515,000
- C) At least 515,000, but less than 530,000
- D) At least 530,000, but less than 545,000
- E) At least 545,000
Answer this question and see the worked solution
Concepts tested
- Bühlmann-Straub Credibility
- Empirical Bayes Credibility
- Expected Value of Process Variance
- Variance of Hypothetical Means