G&c min bias

bill g ( billg5@yahoo.com )
Thu, 15 Apr 1999 14:02:32 -0700 (PDT)

Nicole, I am confused about the use of 0.6 in the denominator for
1.5=.9/ .6 (help on denominator!)
and 1 = .6/ .6 (help on denominator!)

I understood that the 5year overall loss ratio was

total 5 year losses / total 5 year premiums =
(.3*600k+.3*200k+.9*300k+.6*400k) / 1500k = 0.5 (not 0.6!), and I am
lost at that point

thanks for help

bill g

billg5@yahoo.com

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