Example 26 of Klugman's Loss Distribution Review pp. 15-16
Herder Hallmark Consultants ( (no email) )
Thu, 13 Aug 1998 17:20:12 -0500
I have a question about Example 26 on pp15-16 of Klugman's Loss
distribution review. I get the correct answer for the likelihood function
and for the numerator of the modified chi-squared (Q) but for the
denominator of the Q measure I would have the other portion of the
numerator (or the expected instead of the observed frequency). For example
on the first term of the Q measure on p16 I would have:
115[(1-exp(-12x))/(1-exp(-156x))] as the term in the denominator instead of
the observed value of 32. I understood the Q formula to be:
the sum of (observed-expected)^2/expected (the formula on page 165 of
the HK text)
What am I missing?
Kandace Heiser
hhc@coredcs.com