Errata for 2019 Exam 7 Products

High Level Summaries & Flashcards

Taylor (11/17/18) - The formula for the standardized deviance formula originally showed the square root in the denominator. I corrected the formula to match what’s in Taylor. I updated the formula in the version on the CFRF online seminar and it’s corrected for all orders after 11/17.

Taylor (11/30/18) - On page 50, the formula for the mean (mu) when p = 3 is incorrect. It should be (-2*theta)^-1/2. Also, it’s the Inverse Gaussian distribution (not the Inverse Gamma).

Practice Problems

Meyers - 1 (1/2/19) - The percentile of outcome for dataset 6 in the problem should be 86.2 instead of 14.4. This matches the data used in the solution.

Siewert - 8 (1/3/19) - The losses given in the problem should be paid losses, not reported losses:

  • Unlimited paid losses for accident year 2014 are $212,000

  • Paid losses limited to $500k for accident year 2014 are $178,000

Exam 7 Cookbook

Patrik - IBNR Monitoring (2/2/19) - The table on Step 2 should state: “Predicted Reported Loss at March 31, 2016.