Fall 2019 Q3
What is R in solutions 1 and 2? I didn't see something like that in the wiki or the source material. It seems like it's basically A/E, but I'm not sure how they got to it without explicitly calculating A.
What is R in solutions 1 and 2? I didn't see something like that in the wiki or the source material. It seems like it's basically A/E, but I'm not sure how they got to it without explicitly calculating A.
Comments
R is the ratio of the modeled claim frequency for the group with at least one accident to the modeled claim frequency for the entire class. Here, the model is claims follow a negative binomial distribution.
It is mentioned in the wiki, starting with the third paragraph after mini BattleQuiz 1.