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Using the table of claims per year in Problem 2 as well as the following table for the number of claims in each year,
Using the table of claims per year in Problem as well as the following table for the number of claims in each year,
tabletablePolicyYearDevelopment Yeartable
use volume weighted development factors to determine the ultimate number of claims as well as the ultimate average claim size for each policy year. Then determine the reserves that should be held for incurred but not reported claims.
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