ph2warne
Comments
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Perfect, thank you for confirming!
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Ok. I have always been taught that the degree of the polynomial is the value of the highest power, with no dependence on the number of non-zero monomials behind it: 2x^3 is still a 3rd degree polynomial; to save degrees of freedom we wouldn't bli…
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Oh of course, crazy I used this information in my alternate solution yet skipped past drawing the connection on this approach. Thanks.
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Thanks for the reply. I wouldn't say there is particular reason why this alternate approach would be voluntarily used in favour of Table L and M_D. It was more the output of trying to understand the linkage/comparison of table L and M_D, which I…
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I might be wrong, but I would have thought territory factors simply shift the average premium to match the Territory's hypothetical mean, but would have little influence on the extent of variance remaining around this hypothetical mean (refinemen…
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Thank you. I think I'm able to see this as distinguishing the effects of both Process Variance and Variance in the Hypothetical Class Mean.
Class 1 in Bailey & Simon looks more like Territory X, and Classes 2-5 more like Territory Y (re…
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Thanks for the reply. Stating our assumptions and working within them is usually a safe strategy for on the exam, as long as we refrain from making incorrect assumptions. I agree with your point of reinsurance contracts generally being custom su…