Fisher.TableM — BattleActs Exam 8 Forum

Fisher Table M Q#1

BettyK237 — Thu, 18 Jul 2024 04:14:21 +0000

This question has the charge at 1.5=0.7 (which would imply the savings at 1.5=1.2) and the savings at 1.8=.9. I would have thought the higher the r, the larger the savings. How is the savings at 1.5=1.2 but the savings at 1.8=.9? I tried to draw it out and I got myself turned around. Am I missing something?

2016 #12c

jmoore13 — Sun, 08 Oct 2023 14:15:19 +0000

I remember seeing this somewhere else in the wiki's / battlecards but can't find it now - in the examiners report for Fall 2016 #12c, why is it true that "as expected losses increase, we would expect lesser variation in the losses" since 1) high loss values tend to be more volatile and 2) there tend to be fewer of them? Thanks in advance!

Horizontal Slicing Method

xuchaofan8 — Sat, 23 Jul 2022 21:02:00 +0000

Hi,

You put following comments for the horizontal slicing method:

Notice the horizontal method really only lends itself to calculating at entry ratios corresponding to known losses.

To calculate an "in-between" entry ratio insurance charge, form a trapezoid and add that area instead.

Fisher points out in practice there are usually sufficient losses to construct a Table M with intervals of 0.01 between rows

and that linear interpolation is usually accurate enough.

However, if I use the formula [Previous phi(r) + % over r X % change in r], it will give me all the phi(r) for in-between entry ratios. Those values are the same as calculated from vertical slicing method and also the linear interpolation at the same time. But it's equivalent as adding the area of a rectangle in stead of a trapezoid. You can see my calculation in the attached file.

Do you think I can do this way? Why the comment is necessary here?

Thank you,

CFX

Horizontal Slicing Method.xlsx

2015.Fall 15a

admin — Sat, 31 Jul 2021 12:33:19 +0000

The 26,820 basic premium used in this question is, to the best of our knowledge, a random number made up by the CAS that gives a nice integer answer for the net insurance charge, I, embedded.

There's insufficient information in the question to be able to derive this figure independently in the exam.