Interpret what a fitted predictive model, such as a GLM, says about the risks being priced.
Free CAS Exam 5 (Basic Ratemaking and Reserving) lesson in Ratemaking. 21 min read, ~3,156 words.
A GLM predicts expected loss through a linear predictor and a link function; the log link makes it multiplicative, so exponentiate a coefficient to read its relativity. The base level of every factor carries relativity 1.00, and the predicted value equals the base rate times the product of relativities across...
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What this lesson covers
- Content
- Example 1
- Example 2
- Example 3
- Common Mistakes
- Check Your Understanding
- Exam Shortcuts
Learning objectives
- A15
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