# B.10.Brosius

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1. Table M - Construction Data Requirement
• sample of experience from grp of similarly sized risks (loss dist varies by size of risk)
• aggregate ELR (can use sample mean)
2. Table M - Insurance charge φ(r)
• area above r in Lee Diagram / total area
• when we need only 1, limit r to what we're interested in, φ(r) = avg diff btwn lim / unlim
3. Table M - Vertical slice method
• look risk by risk
• (+) natural approach - as data is presented
• (+) easiest to understand
• (+) quick for 1 entry ratio
• (-) need to repeat entire process for other r's
• (-) need to deal w each risk individually
4. Table M - Horizontal slice method
• look by layer
• (+) easiest to compute more than one ins charge
• (-) difficult to understand
• (-) initial prep work is needed in most cases
5. Table M - Construct w horizontal method
• φ(r) = width * % risks over
• φ(r) = ri+1 - ri * # risks over / total # risks
6. Table M - If μ ≠ sample mean
• theory: use sample mean
• practice: use μ and normalize table (divide all by φ(0))

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 Author: Exam8 ID: 166030 Filename: B.10.Brosius Updated: 2012-08-14 20:51:18 Tags: table Folders: Description: Table M Construction Show Answers:

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