An insurer offers a coverage with a policy limit of 1500. The following four claims are observed on this coverage:
600 749 804 1250
It is also known that there are two additional claims for an amount over 1500 that are censored at 1500.
An actuary models ground-up losses using an exponential distribution with parameter θ = 1000. This model is tested against the experience using the Anderson–Darling A2 statistic.
Calculate A2 and provide a conclusion about the acceptance-rejection level of the null hypothesis.
An insurer offers a coverage with a policy limit of 1500. The following four claims are observed on this coverage: 600 7
-
answerhappygod
- Site Admin
- Posts: 899604
- Joined: Mon Aug 02, 2021 8:13 am
An insurer offers a coverage with a policy limit of 1500. The following four claims are observed on this coverage: 600 7
Join a community of subject matter experts. Register for FREE to view solutions, replies, and use search function. Request answer by replying!