CAS Exam 7 Practice Questions - CAS Exam 7 Policy Liabilities, Valuation & ERM Exam

Mack's three core assumptions for the chain ladder model include all of the following EXCEPT:

Expected cumulative losses in column j+1 are proportional to those in column j Cumulative losses for different accident years are independent The variance of cumulative losses in column j+1 is proportional to the cumulative loss in column j Incremental losses are independently and identically log-normally distributed

Correct Answer:

Incremental losses are independently and identically log-normally distributed

Access more questions from this quiz

Continue to CAS Exam 7 Practice Questions - CAS Exam 7 Policy Liabilities, Valuation & ERM Exam for more practice questions and the full quiz experience.

Access More Questions