Exam6: Berquist/Sherman

[Graduate]

I've two questions regarding B/S reserve estimation Methods 1-6 as discussed in All10:

1) All-10's Example of Method1: Linear Regression estimates of paid LDF:

I'm not getting how are we supposed to calculate PROJECTED DEVELOPMENT FACTOR matrix?

ok...these are simple avgs for those columns of D with 2 or less development factors. How about the rest?

2) Are we supposed to use the notations used for these methods 1-6 in text? (All10 explains it in exhibit format without using notations).

Thank you very much for any help.

[blackjack]

Graduate -

1) The projected factors where there are 3 or more LDFs are derived via linear regression. You can easily do this with the TI-30 IIS calculator approved for this exam. For periods with 2 or less, use the simple avg.

2) Don't worry about the notation as much as how to answer a problem. I wouldn't think they would give us a problem like Methods I - VI but you never know (see 1997 exam!). These are just too long for an exam type problem, IMO.

[Graduate]

Originally Posted by blackjack

The projected factors where there are 3 or more LDFs are derived via linear regression. You can easily do this with the TI-30 IIS calculator approved for this exam.

mmm....the only CAS approved calculator I've is an old solar BA-35...Am I missing something? are the CAS exam questions are written assuming that all students have their hands on new approved calculators?

Thanks ALOT for replying.

[Graduate]

Continuously banging my head with B/S's exhibits:

1) All-10's example for Method3:

I can't figure out how to get the following tables:
Trended Incremental Claim Cost Matrix (to 1997),
Projected Incremental Claim Cost Matrix,
Projected Incremental Claim Payments.

2) All-10's example for Method4:

Can anyone explain me how to get "CREDIBILITY WEIGHTED" Column?
Many many thanks for any help.

[blackjack]

mmm....the only CAS approved calculator I've is an old solar BA-35...Am I missing something? are the CAS exam questions are written assuming that all students have their hands on new approved calculators?

The TI is approved and makes life a hell of alot easier if you get it. The BA-35 rocks for Part 2 and 3 but for the upper exams, you gotta get the TI. No memorizing linear regression formulas if you know how it works. For $15, it's well worth it!

[Archen]

Originally Posted by Graduate

mmm....the only CAS approved calculator I've is an old solar BA-35...Am I missing something? are the CAS exam questions are written assuming that all students have their hands on new approved calculators?

Thanks ALOT for replying.

I've a BA-35. But I find it is chain-type based. I mean BA-35 tells me 2+3*4=20 rather than 14. Can I change this?

[Macroman]

Originally Posted by Archen

I've a BA-35. But I find it is chain-type based. I mean BA-35 tells me 2+3*4=20 rather than 14. Can I change this?

enter 3*4+2=

[intelmic]

Originally Posted by Archen

I've a BA-35. But I find it is chain-type based. I mean BA-35 tells me 2+3*4=20 rather than 14. Can I change this?

there is an option to change this on your calculator. I don't remember where. Look in your user manual... that is if you still have it

[Macroman]

Originally Posted by intelmic

there is an option to change this on your calculator. I don't remember where. Look in your user manual... that is if you still have it

Not for the BA-35.

The BA-II PLUS is another story.

[Archen]

Right. I've looked through the user manual. No word about change this.
2+3*4= is easy to convert to 3*4+2=. But how about 2+3*4+5*6=? Can't be converted at all.