Practice Exam 2 #17 and #22
I have a couple of questions on Practice Exam 2.
For Question #17d, is the question faulty? I think it is missing an actual question.
For Question #22a, I thought using the actuary's point estimate (or anything the actuary calculated) to calculate a materiality standard was not allowed. Am I confused about this? I thought the materiality standard was supposed to be independent of the actuary, so I used 18+7=25 as reserves (Losses + LAE).
Comments
Yes, for Q17d, only the data was provided. The question should have been:
This has been corrected.
For Q22a:
This has been corrected. Thank you for pointing this out.