PE2 #5 part A

For this problem when calculating the claim severity you do not take the LN of the DMD/20 before applying the parameters to get Ln(mu) was this a mistake or am I missing something?

Comments

  • Also confused on this question - i expected it to be like Fall 2016 #6a where they included it as B*ln(continuous variable) in the linear predictor set equal to ln(u).

  • Thanks for pointing this out. It is an oversight on our part. We have updated the solution file in the PowerPack.

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