Loss Models: From Data to Decisions, Fifth Edition continues to supply actuaries with a practical approach to the key concepts and techniques needed on the job. With updated material and extensive examples, the book successfully provides the essential methods for using available data to construct models for the frequency and severity of future adverse outcomes.
The book continues to equip readers with the tools needed for the construction and analysis of mathematical models that describe the process by which funds flow into and out of an insurance system. Focusing on the loss process, the authors explore key quantitative techniques including random variables, basic distributional quantities, and the recursive method, and discuss techniques for classifying and creating distributions. Parametric, non-parametric, and Bayesian estimation methods are thoroughly covered along with advice for choosing an appropriate model. Throughout the book, numerous examples showcase the real-world applications of the presented concepts, with an emphasis on calculations and spreadsheet implementation.
Loss Models: From Data to Decisions, Fifth Edition is an indispensable resource for students and aspiring actuaries who are preparing to take the SOA and CAS examinations. The book is also a valuable reference for professional actuaries, actuarial students, and anyone who works with loss and risk models.
Table of Contents
1 Introduction 1
2 Chapter 2 Solutions 3
Section 2.2 3
3 Chapter 3 Solutions 9
Section 3.1 9
Section 3.2 14
Section 3.3 15
Section 3.4 15
Section 3.5 19
4 Chapter 4 Solutions 23
Section 4.2 23
5 Chapter 5 Solutions 29
Section 5.2 29
Section 5.3 39
Section 5.4 40
6 Chapter 6 Solutions 43
Section 6.1 43
Section 6.5 43
Section 6.6 44
7 Chapter 7 Solutions 47
Section 7.1 47
Section 7.2 48
Section 7.3 50
Section 7.5 54
8 Chapter 8 Solutions 59
Section 8.2 59
Section 8.3 61
Section 8.4 63
Section 8.5 63
Section 8.6 67
9 Chapter 9 Solutions 71
Section 9.1 71
Section 9.2 71
Section 9.3 72
Section 9.4 81
Section 9.6 82
Section 9.7 87
Section 9.8 89
10 Chapter 10 Solutions 95
Section 10.2 95
Section 10.3 99
Section 10.4 99
Section 10.5 103
11 Chapter 11 Solutions 105
Section 11.2 105
Section 11.3 110
Section 11.4 110
Section 11.5 114
Section 11.6 119
Section 11.7 121
12 Chapter 12 Solutions 123
Section 12.7 123
13 Chapter 13 Solutions 129
Section 13.2 129
Section 13.3 138
14 Chapter 14 Solutions 141
Section 14.2 141
Section 14.3 144
Section 14.4 149
Section 14.5 151
Section 14.6 155
Section 14.7 157
Section 14.8 158
15 Chapter 15 Solutions 161
Section 15.3 161
Section 15.4 164
Section 15.5 170
16 Chapter 16 Solutions 177
Section 16.7 177
17 Chapter 17 Solutions 181
Section 17.9 181
18 Chapter 18 Solutions 211
Section 18.5 211
19 Chapter 19 Solutions 219
Section 19.1 219
Section 19.2 220
Section 19.4 221
Section 19.4 221
