Exam MAS-II Practice Question 21
Study guide: Exam MAS-II
A pure premium model is scored on holdout data. Aggregated by predicted loss cost and sorted from lowest to highest prediction, the data are:
| Predicted loss cost | 40 | 60 | 80 | 100 | 150 |
|---|---|---|---|---|---|
| Exposure | 2.0 | 3.0 | 2.0 | 2.0 | 1.0 |
| Loss | 40 | 120 | 140 | 200 | 500 |
The model's segmentation power is measured by the Gini index from its Lorenz curve, with the area under the curve calculated by the trapezoidal method.
Calculate the Gini index.
- A) 0.235
- B) 0.265
- C) 0.470
- D) 0.530
- E) 0.765
Answer this question and see the worked solution