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  #2111  
Old 07-25-2017, 09:47 AM
|B|rad |B|rad is offline
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Three days left to submit appeals.

I sent in two, both on question 10.

1. I don't believe that the sample answer graph for 10(a) can result from the bootstrap process on the syllabus when calendar-year effects are in play, but a ton of other shapes can.
2. I dispute the # of residual points required in the graphs for both parts.
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  #2112  
Old 07-25-2017, 12:21 PM
v10 v10 is offline
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Regarding question 25.b.: I am not convinced that a capital infusion would increase overall demand of insurance. I could see a policyholder preferring a better capitalized insurer relative to other insurers. But if the entire industry receives a capital infusion, I don't see more people seeking insurance. Even if that was the case, the elasticity would be so small the demand curve would hardly move.

I can't find anything online that cites industry capitalization rates as a determinant of insurance demand. Does anyone see support for this CAS model solution in Brehm? I don't have the study kit at the moment.
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  #2113  
Old 07-25-2017, 12:37 PM
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Abelian Grape Abelian Grape is offline
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Quote:
Originally Posted by |B|rad View Post
Three days left to submit appeals.

I sent in two, both on question 10.

1. I don't believe that the sample answer graph for 10(a) can result from the bootstrap process on the syllabus when calendar-year effects are in play, but a ton of other shapes can.
2. I dispute the # of residual points required in the graphs for both parts.
Sure you can come up with examples with different numbers of points (aside from the one incrementing by 1), but I feel like it's less obvious unless you explicitly state why it's the case. It's reasonable to assume that the graders would otherwise think it was an oversight.
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  #2114  
Old 07-25-2017, 11:50 PM
|B|rad |B|rad is offline
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Originally Posted by Abelian Grape View Post
Sure you can come up with examples with different numbers of points (aside from the one incrementing by 1), but I feel like it's less obvious unless you explicitly state why it's the case. It's reasonable to assume that the graders would otherwise think it was an oversight.
Can you show heteroscedasticity by age using the same number of residuals at each of ages 12, 24, 36, 48? Yes.

Is it reasonable to have the same number of residuals at each of those ages? Yes.


Am I (or anyone else) to be punished because I haven't spent my entire career reserving Auto PD for Mississippi, where every triangle looks exactly the same and my bootstrapping residuals by age always go 6, 5, 4, 3? I answered the question asked. If they had supplied a triangle and I gave the wrong number, then I wouldn't argue.
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