Fall 2016 11b
When the solution says closure rates decreased in CY 2015 in all years, is it referring to the fact that closure rates are lower in CY 2015 compared to other values in their diagonal in Sched P format (comparing with other values in column in left adjusted non-sched P format)? For example:
- comparing 73.5% (CY 2015, AY 2015) with 80.4%, 80.2%, 80.4%
- comparing 91.0% (CY 2015, AY 2014) with 95.7%, 95.2%
Comments
Correct.
It may help to think of this in terms of ages of the accident years.
73.5% is age 1 of AY 2015. 80.4% is age 1 of AY 2014.
91% is age 2 of AY 2014. 95.7% is age 2 of AY 2013. And so on.