Question: While computing reserves, the management team wants to show minimum amount of shareholders' equity as possible. If an actuary was computing reserves using prior year
While computing reserves, the management team wants to show minimum amount of shareholders' equity as possible. If an actuary was computing reserves using prior year loss triangles, which choice would minimize shareholders' equity Choice of average loss ratio pick and being prudent Choosing the minimum loss ratio picks as possible and be a little risky Choosing the maximum loss ratio trends and being very cautious None of the choices are valid
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