ABC Corporation manufactures electronic devices. The following table shows the number of consumer injury claims filed against ABC in the past five years.

		Loss Year
		2014	2015	2016	2017	2018
Experience Year	2014	5	8	10	18	27
	2015		2	6	8	16
	2016			3	7	10
	2017				5	8
	2018					8

Calculate the loss development factors. The first four rows of the following table are supposed to help you achieve the final answer. What are mean loss development factors (bottom row) associated with the first and second columns (Year 1-2 and Year 2-3)?

Development Period
	Year 1-2	Year 2-3	Year 3-4	Year 4-5
2014
2015
2016
2017
Mean Factor

Group of answer choices

A) 3.15 and 2.17

B) 2.13 and 1.34

C) 1.87 and 0.78

D) 1.58 and 1.26

Flag this Question

Question 2 1 pts

This question is related to the above question. What are mean loss development factors (bottom row) associated with the third and fourth columns (Year 3-4 and Year 4-5)?

Group of answer choices

A) 1.2 and 2.6

B) 2.5 and 1.4

C) 1.3 and 0.9

D) 1.9 and 1.5

Flag this Question

Question 3 1 pts

Given the data in the first question and the loss development factors calculated in the first two questions, estimate the number of claims in years 2019, 2020 and 2021 associated with products sold in the year 2018.

Group of answer choices

A) 17.04, 22.83, and 43.38

B) 16.35, 21.25, and 39.52

C) 18.36, 25.98, and 48.67

D) 20.65, 36.74, and 49.52