Actuarial Outpost
 
Go Back   Actuarial Outpost > Actuarial Discussion Forum > Property - Casualty / General Insurance
FlashChat Actuarial Discussion Preliminary Exams CAS/SOA Exams Cyberchat Around the World Suggestions



Reply
 
Thread Tools Search this Thread Display Modes
  #1  
Old 09-14-2018, 12:05 PM
RedSoxJSS RedSoxJSS is offline
SOA
 
Join Date: Nov 2017
Location: New York, NY
Studying for Exam FM/2
Favorite beer: Corona
Posts: 4
Question GROWTH Formula in Excel

Hey guys,

I have an Excel question. If you think you can help me or give me other suggestions (within Excel please!), I would be most appreciative.

I am trying to find the trend in premiums (y-values) based on year (x-values) using the GROWTH formula - that's how this process has been done in the past. However, for some years, the premium (y-values) are 0, which leads to a #NUM! error. I also receive this error when using the RSQ formula for the same years.

Does anyone have any ideas about manual calculations I can perform (instead of Excel's formulas) or other suitable functions/reconciliations that may be useful to me?

Thanks in advance!
Reply With Quote
  #2  
Old 09-14-2018, 12:42 PM
AMedActuary AMedActuary is offline
Member
SOA
 
Join Date: May 2007
College: UCLA Alumni
Posts: 391
Default

This is mainly because you can't take a log of 0.

You can try adding a small amount like 0.01 or 1 to all of your premiums then remove it from your predicted value.

The other issue is that these zero premiums are really going to mess with your model (even with a transformation) so depending on how many there are and why they exist, you may want to remove them. Do they exist because it's a small block of members and sometimes, there's no membership and hence no premium? If so, I recommend just removing the years with no premium when using the growth function.
Reply With Quote
Reply

Tags
excel, formula, growth, rsq, statistics

Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off


All times are GMT -4. The time now is 10:54 PM.


Powered by vBulletin®
Copyright ©2000 - 2018, Jelsoft Enterprises Ltd.
*PLEASE NOTE: Posts are not checked for accuracy, and do not
represent the views of the Actuarial Outpost or its sponsors.
Page generated in 0.60777 seconds with 9 queries