for this one i put PP method, my reasoning being that new rating variables will entail rate changes, which means if you use LR method you'll have to adjust premium to put it on-level which could be computationally intensive.
i don't believe exposure correlation is a concern when calculating overall indicated rates, only when classifying risks.
Originally Posted by booyah81
That's what I put.
Originally Posted by JasonScandopolous
ditto. From the W&M readings, this is almost certainly what they wanted as the answer.