Math homework

3588_problem_c_1.xlsx

Sheet1

Lebowski, Inc.
Workers' Compensation
Evaluated as of 02/28/17
Actual vs Expected Incurred Loss Development
									Ratio of	Ratio of
					Prior Ratio		Ratio of		Incremental	Undeveloped							Selected	Current
	Prior	Prior	Prior		of Incurred		Incurred		Incurred	Loss to	Expected		Actual				Change in	Ultimate
Policy	Ultimate	Incurred	Indicated		Loss to		Loss to		Loss to	Ultimate	Incremental		Incremental		Indicated		Ultimate	Loss
Year	Loss	Loss	IBNR		Ultimate		Ultimate		Ultimate	1 - (4)	Incurred Loss		Incurred Loss		Difference		Loss	(1) + (11)
	(1)	(2)	(3)	0	(4)	(1)	(5)	(2)	(6)	(7)	(8)	2	(9)	1	(10)	0	(11)	(12)
2005	150,000	145,000			1.000		1.000			0.000			2,100					150,000
2006	165,000	160,000			0.998		0.999			0.002			- 0					165,000
2007	127,000	127,000			0.993		0.995			0.007			- 0					127,000
2008	100,000	80,000			0.985		0.987			0.015			5,500					100,000
2009	58,000	54,000			0.974		0.977			0.026			1,100					58,000
2010	70,000	68,500			0.957		0.963			0.043			250					70,000
2011	73,000	73,000			0.932		0.939			0.068			- 0					73,000
2012	77,000	77,000			0.900		0.909			0.100			- 0					77,000
2013	82,000	74,000			0.857		0.870			0.143			450					82,000
2014	80,000	71,042			0.796		0.815			0.204			1,000					80,000
2015	86,500	80,309			0.706		0.734			0.294			800					86,500
2016	120,000	102,500			0.583		0.618			0.417			1,800					120,000
Total	$ 1,188,500	$ 1,112,351	$ - 0								$ - 0		$ 13,000		$ - 0		$ - 0	$ 1,188,500

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