Fall 2014 #1 c

mercredi 25 février 2015

The 2014 #1 accepted exam solutions are:


Quote:








Part c: 0.25 point

Accepted Answer 1

Decrease frequency as hours worked will be a larger number than number of employees.

Accepted Answer 2

Shifting from number of employees to hours worked would increase frequency. Part time

employees would be treated as having the same exposure as full time employees when using

number of employees so shifting to hours work would correct for this and decrease the

exposure. Frequency is calculated as claim counts divided by exposure so frequency would

increase.



How does Accepted Answer 2 get credit? I don't get it.





Fall 2014 #1 c

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