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Foundations of Casualty Actuarial Science

data and verification of sources are undertaken at
this point .

ii) Reserve estimation techniques-Application of
appropriate reserve estimation technique takes place
at this point.

iii) Evaluation-Various conflicting results of the
reserve methods are evaluated with an attempt to
reconcile or explain the differences .At this point
the proposed reserve amounts are evaluated in
context outside their original frame of analysis .

iv) Monitoring - Monitoring , projections of reserve
development over subsequent period , and deviations
of actual development from projected development
are one of the most important diagnostic tools for
evaluating the accuracy of reserve estimates.

Q7. Understanding the data is a pre-requisite in
estimating sound loss reserves - Explain the
concept of exploratory data analysis.

Ans. Exploring the data begins by understanding the trends
and changes affecting the database. Understanding is

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