The confusion lies in the fact that the text refers to full credibility
criterion for Frequency as N0 and the study manual
refers to this same quantity as NF , which happens to be the notation that
Hossack, et al. uses for the full credibility
criterion for Pure Premium.
Russell McCollough
rmccollough@sfbcic.com
> -----Original Message-----
> From: Dimitra Roidakis [SMTP:dr@g-g-a.com]
> Sent: Thursday, August 27, 1998 1:43 PM
> To: studygroup4b@lists.casact.org
> Subject: Study Manual 4b, Fall 1998
>
> I have a question from the study manual, fall 1998.
>
> It's concerning full credibility and partial credibility.
> Page 77 question C14, and C15 deal with the same type of problem.
> My question is why do they use the following equation for the full
> credibility:
>
> Nf=(y/k)^2
> and they assume that sigma over m the coefficient of variation in
> both question is zero. For this to be true then P(Xi=d)=1 has to be
> true, but I don't think it is. Could it be a mistake? I just want to
> make sure.
>
> Thanks
> Dimitra
> dr@g-g-a.com