The mean values and the number of observations in each cell of a 2 x 2...
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The mean values and the number of observations in each cell of a 2 x 2 classification table are Means Column 1 Column 2 Observations Column 1 Column 2 Row 1 87 51 Row 1 13 14 Row 2 37 29 Row 2 16 17 Illustration: The cell in row 1 column 1 has a mean of 87 from a sample of 13 observations. An actuary is setting class relativities for insurance pricing using an additive model and the balance principle. The mean value of the cell with row (j) and column (k)= base rate + row relativity (j) + column relativity (k). The base rate is 10, and the initial column relativities are 10 for Column 1 and 0 for Column 2. Question 1.39: Balance principle additive model implied relativity What is the implied relativity for Row 1, using the initial relativities by column? A. 45.491 B. 48.167 C. 50.843 D. 53.519 E. 56.194 Question 1.40: Balance principle additive model implied relativity What is the implied relativity for Column 2, using the computed relativities by row? A. -5.378 B. -5.122 C. -4.866 D. -4.610 E. -4.353 The mean values and the number of observations in each cell of a 2 x 2 classification table are Means Column 1 Column 2 Observations Column 1 Column 2 Row 1 87 51 Row 1 13 14 Row 2 37 29 Row 2 16 17 Illustration: The cell in row 1 column 1 has a mean of 87 from a sample of 13 observations. An actuary is setting class relativities for insurance pricing using an additive model and the balance principle. The mean value of the cell with row (j) and column (k)= base rate + row relativity (j) + column relativity (k). The base rate is 10, and the initial column relativities are 10 for Column 1 and 0 for Column 2. Question 1.39: Balance principle additive model implied relativity What is the implied relativity for Row 1, using the initial relativities by column? A. 45.491 B. 48.167 C. 50.843 D. 53.519 E. 56.194 Question 1.40: Balance principle additive model implied relativity What is the implied relativity for Column 2, using the computed relativities by row? A. -5.378 B. -5.122 C. -4.866 D. -4.610 E. -4.353
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Balance Principle Base rate Row relativity 3 wolumn relativity and Base rate is 10 Row ... View the full answer
Related Book For
Probability and Statistics
ISBN: 978-0321500465
4th edition
Authors: Morris H. DeGroot, Mark J. Schervish
Posted Date:
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