Difference between revisions of "Friedland08.ExpectedClms"

Revision as of 20:03, 24 April 2020

Based on past exams, the main things you need to know (in rough order of importance) are:

reference	part (a)	part (b)	part (c)
E (2016.Spring #16)	unpaid claims: - expected claims method	Friedland07.Development	Friedland09.BornFerg
E (2015.Fall #17)	Friedland07.Development	ultimate claims: - expected claims method
E (2015.Spring #18)
E (2014.Fall #15)
E (2014.Spring #19)

Let's build from a very simple of the ECR method or Expected Claims Ratio method. Suppose you're given the following:

ECR = 75%

EP = 1,000

Then by the ECR method:

ultimate loss = ECR x EP = 75% x 1,000 = 750

@@ Line 59: / Line 59: @@
 Let's build from a very simple of the ECR method or ''Expected Claims Ratio'' method. Suppose you're given the following:
-* ECR = 75%
+: '''ECR''' = 75%
-* EP = 1,000
+: '''EP''' = 1,000
-Then
+Then by the ECR method:
-* ultimate loss = ECR x EP = 75% x 1,000 = <u>750</u>
+: '''ultimate loss''' = ECR x EP = 75% x 1,000 = <u>750</u>
 ==POP QUIZ ANSWERS==