Originally Posted by Galois
Does it matter if you calculate R with the relative severities or with the relative losses? My understanding is that it should give you the same result (limited and unlimited claim counts should be the same). Do you think they would have given credit if R was 3.5 (using losses), and if not why not?
I think the disparity is that excess claim counts don't stay the same. Since the proportion of limited claim counts + excess claim counts to total claim counts don't equal 1 the weighting of x and 1-x doesn't work, making weighting difficult unless you adjust for this by... blah, blah, blah. I'd always default to the paper for the exam, which uses relative severities.
I'm guessing a candidate recieve full credit for a) and shouldn't have. Then the person placing the solutions together either didn't catch it or didn't know any different. Oops...