Errata for 2018 Exam 8 Products
I always hated seeing errors in study material when I was taking exams, so I do my best to check everything as much as possible. Nevertheless, any mistakes remaining in the Rising Fellow material are my own. I keep an up-to-date errata here to document and fix any errors found during the sitting.
If you spot an error in the study material, please quick send me a message so that I can correct the error and document it here for others. Thanks!
Errata for Exam 8 Cookbook
Robertson - Calinski-Harabasz Statistic (9/17/18): The first bullet point says: "The trace of the dispersion matrix of class excess loss factors is 0.0470." The paper mentions that trace(S) is the total sample variance, not trace(T). Matrix T is called the dispersion matrix.
Clark - Recursive Aggregate Distribution (9/10/18): On page 155, the key formula in step 2 has an incorrect subscript. The final term should show A_k-i.
NCCI 2 - NCCI Retro Premium (9/5/18): For a problem like this, it's always good practice to show that the calculated retro premium is between the min and max premium. It is in this case, but I could've shown the quick check.
Grossi - Occurrence Exceedance Probability (9/5/18): There is a typo in step 1. OEP(3,000) should be 0.01495.
Clark - Casualty XOL Workers Comp (8/22/18): The exposure factor formula has a typo, but the calculations are correct. The ELF terms should be switched and read: Exposure Factor = ELF(AP) - ELF(AP+L)