The third criterion for credibility must hold for any level of exposure. We picked random exposure numbers which demonstrate this criterion fails. You could have picked other exposure numbers (expected losses) such as 25,000 and 25,001 to demonstrate with.
Comments
The third criterion for credibility must hold for any level of exposure. We picked random exposure numbers which demonstrate this criterion fails. You could have picked other exposure numbers (expected losses) such as 25,000 and 25,001 to demonstrate with.