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4 (5 POINTS) The first year pure premium underlying the rate equals 1000. The loss experience is such that the actual pure premium for that
4 (5 POINTS) The first year pure premium underlying the rate equals 1000. The loss experience is such that the actual pure premium for that year equals 1200 and the number of claims equals 600. If 5400 claims are needed for full credibility and the square root rule for partial credibility is used, estimate the pure premium underlying the rate in the second year. Ignore any inflation. 4 (5 POINTS) The first year pure premium underlying the rate equals 1000. The loss experience is such that the actual pure premium for that year equals 1200 and the number of claims equals 600. If 5400 claims are needed for full credibility and the square root rule for partial credibility is used, estimate the pure premium underlying the rate in the second year. Ignore any inflation
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