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actuariallady
04-07-2011, 12:57 PM
Hi , I am confused how the right lower corner " Exponential trend" are calculated? what does ** point mean?

Appendix A- Auto indication- Premium Trend1 Exhibt

Thanks a lot !~

Vorian Atreides
04-07-2011, 03:26 PM
How many data points are used for the calcuations.

For example, if you're given quarterly data points (and let's say that these are rolling 12 values) from 1st Qtr 2005 through 4th Qtr 2009, then a 4 point trend would use only the four quarters from 2009.

An 8 point trend would use only the eight quarters from 2008 and 2009.

More typically in this scenario, you'll see 12 point (latest 3 yrs of data), 16 point (latest 4 yrs of data), and/or 20 point trends.