Sample 9
The solution provided by CAS states that LOB A has a longer duration than LOB B, and therefore LOB B would have a higher RA and that this matches results. The problem is that LOB B does not have a higher RA, so clearly there is a mistake here. What would a more accurate statement be?
Comments
I think all you have to do is update it to "LOB A would have a higher RA."
The first statement also says that LOB A has lower frequency and higher severity, so LOB A would have the higher RA.
Probably just a typo from CAS. (classic)
yeah it's just a typo lolol - Happens all the time with the CAS
why we use the weighted average from undiversified CTE?
I mean it depends on what method you have chosen for your RA -> It can be anything appropriate as stated in the note