The top of page 659 shows adjusted countrywide To Ultimate loss
development factors. This adjustment is for the change in the mix of
indemnity and ALAE development patterns. Where are these factors to be
used in the overall calculation of credibility weighted loss development
factors by state (final calculation shown on the top of page 657)?
On page 653 an adjustment is made to the state's link ratio for each
year to eliminate random variation from the states link ratios (CW loss
development factor for latest year/CW loss development factor for year
j). Is this adjustment only made to the state's link ratios that will be
used in the calculation of K and not for the link ratios that will be
credibility weighted?
Brad