"Do not try to reproduce the "snowballing effect" on the bottom half of
page 184. It can't be done. You will waste valuable study trying to
figure out how the authors derived these figures."
I know, I have wasted valuable study time trying to reproduce the
$3,039,000.
I cannot do it.
I hope the examiner will not ask a question from this example. I do not
think they have ask one yet. If they do we will appeal!!!!
-----Original Message-----
From: Schuster, Annmarie [mailto:Annmarie_Schuster@CUUSA.com]
Sent: Wednesday, July 15, 1998 12:14 PM
To: studygroup7@lists.casact.org
Subject: Bornhuetter/Ferguson The Actuary and IBNR
On the bottom of page 184, can anyone explain how B/F arrived at the
$3,039,000 figure for the 1971 IBNR reserve?
Thanks,
Annie