
#1




Calculating the hetero adjustment
I am trying to replicate the Milliman example for ODP bootstrapping given by Shapland from the original paid triangle in R
Let's say I want to find the hetero adjustment factor for periods 13 and the other factors are 47 and 810. I have confirmed that my standardized residuals are correct using the H matrix. I have found the standard deviation of all the standardized residuals in periods 13, and I have found the standard deviation of all of the standardized residuals across all periods, excluding the null points on each end of the triangle that do not have a residual. I then divide h for all values by h for periods 13, but I get 1.546. Here are the values I found standard deviations for: Just the periods 13 [1] 183.60702 133.82127 131.24915 43.39100 64.92590 57.36316 148.73570 92.42188 55.11517 102.84746 244.50883 223.31533 [13] 204.07214 189.73109 148.75836 79.40858 72.84334 97.06667 88.67449 164.26735 138.44964 190.01584 140.95863 284.34219 [25] 27.97642 27.97642 and all periods [1] 183.60702 133.82127 131.24915 371.06810 193.89249 591.28897 272.45711 117.94646 118.19503 43.39100 64.92590 57.36316 [13] 160.13799 208.95238 159.80436 306.65820 32.42232 118.19503 148.73570 92.42188 55.11517 26.64048 272.21870 476.41522 [25] 252.07613 75.73922 102.84746 244.50883 223.31533 658.09028 460.58857 84.67212 318.35358 204.07214 189.73109 148.75836 [37] 215.74333 24.18163 206.31529 79.40858 72.84334 97.06667 231.49620 256.12390 88.67449 164.26735 138.44964 37.66763 [49] 190.01584 140.95863 284.34219 27.97642 27.97642 How do I get the right value? Thanks
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Last edited by AbedNadir; 01102019 at 02:51 AM.. 
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#4




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I compared some of your residuals to the ones in the Residuals sheet they look very similar. Seems like you're doing the calculations correctly. 
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thanks
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