Actuarial Outpost ASM Exam C Manual Exercise 11.15 [4-F01:36]
 Register Blogs Wiki FAQ Calendar Search Today's Posts Mark Forums Read
 FlashChat Actuarial Discussion Preliminary Exams CAS/SOA Exams Cyberchat Around the World Suggestions

 Enter your email to subscribe to DW Simpson weekly actuarial job updates. li.signup { display: block; text-align: center; text-size: .8; padding: 0px; margin: 8px; float: left; } Entry Level Casualty Health Life Pension All Jobs

#1
05-18-2018, 02:09 PM
 jenniferlsq SOA Join Date: May 2018 College: Bucknell University Posts: 1
ASM Exam C Manual Exercise 11.15 [4-F01:36]

For this question, can someone help me understand how is the average number of losses per year = 2,000,000/23,759?

This does not make sense to me because 2,000,000 is the aggregate loss, but 23,759 is average payment with policy limit of 1,000,000 - so how is expected number of loss = expected aggregate loss / expected payment with policy limit?

I understand the formula is E[S]=E[N]*E[X] but my understanding is that this E[min(Loss;1,000,000)] is not E[X].

Also, anyone found Abe (the one who wrote the book and made the coaching actuaries videos) a bit passive aggressive when answering questions? I feel dis-encouraged asking questions on CA because of that..
#2
05-22-2018, 08:31 PM
 Academic Actuary Member Join Date: Sep 2009 Posts: 7,931

It would help if you could post the problem as some people do not have the manual.
#3
05-22-2018, 08:59 PM
 Abraham Weishaus Member SOA AAA Join Date: Oct 2001 Posts: 7,170

Aggregate losses are the total losses after individual deductibles and limits, so they already take the 1000000 per-claim limit into account. Aggregate losses are only modified by aggregate deductibles and aggregate limits.

 Tags asm c/4 exam