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Old 08-24-2019, 09:58 PM
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gauchodelpaso gauchodelpaso is offline
Join Date: Feb 2012
College: Eastern Michigan U
Posts: 186

The way that I understand it , but I may be wrong, is that accident year four, goes from January 1 CY4 to December 31 CY4, with midpoint for all accident dates of July 1 CY4. I normally write this time as 4.5. It does not matter when the policy was written, as long as the accident date is within CY4.

Now the midpoint for the accidents of the new rate is November 1 CY6 or t=6 5/6=6.8333...

So the difference is 6.833-4.5=2.333
Same for AY3, and 3.333 as the difference between their midpoints.

Prelims: 1/P - 2/FM - 3F/MFE - LTAM - STAM
VEE: Economics - Corporate Finance - Applied Statistics
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