Loss Models: From Data to Decisions, 5e Student Solutions Manual (5^th Ed.) From Data to Decisions Wiley Series in Probability and Statistics Series

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.

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