An insurer offers a coverage with a policy limit of 1500. The following four claims are observed on this coverage: 600 7
Posted: Mon May 09, 2022 10:36 am
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.
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.