#41

[triplea]

I have a problem with that. The method that they may be looking for is not actuarially sound.

I believe the answer has infinitely many solutions.

Proof coming....

[kolya23]

As one of the few people who did this question, and doesn't want my 10 minutes of effort to go to naught as everyone gets credit...

I do not agree. There is only one answer, and it is 1.1444, 1.5, 1.0563, 1.8.

[kolya23]

After all, part of the charm of the exams is that you have to try to imagine what the exam-writers were thinking, and anticipate how they would want you to solve the problem, not on the facts of the problem.

[triplea]

Just trying to understand how to do the problem correctly, not as the graders wanted. I don't really care, but as an actuary, I want to do it the right way in practice.

[FatActuary]

Originally Posted by kolya23

As one of the few people who did this question, and doesn't want my 10 minutes of effort to go to naught as everyone gets credit...

I do not agree. There is only one answer, and it is 1.1444, 1.5, 1.0563, 1.8.

[DarkHelmet]

this is one problem that i really had no clue how to do. what's the general idea?

i wanted to make it a siewart problem with XS, BL, and TL LDF's ... but could not see how the provided data gave us enough information.

please impart your wisdom on this matter.

[chatthis]

Originally Posted by kolya23

As one of the few people who did this question, and doesn't want my 10 minutes of effort to go to naught as everyone gets credit...

I do not agree. There is only one answer, and it is 1.1444, 1.5, 1.0563, 1.8.

Originally Posted by FatActuary

[triplea]

well, how do you expect limited and excess losses to develop just like unlimited losses???

[chatthis]

Originally Posted by triplea

well, how do you expect limited and excess losses to develop just like unlimited losses???

If the development is purely based on new reported claims with the same severity distribution, then every layer will have the same ldf.

[triplea]

Originally Posted by chatthis

If the development is purely based on new reported claims with the same severity distribution, then every layer will have the same ldf.

what? I guess I don't understand.

and maybe I am being stupid