BalanceProperty: Balance property

In actuaRE: Handling Hierarchically Structured Risk Factors using Random Effects Models

Balance property

Description

Function to assess whether the balance property holds

Usage

BalanceProperty(obj)

Arguments

obj	an object containing the model fit

Value

a list with the slots call (the original call), BalanceProperty (logical indicating whether the balance property is satisfied) and Alpha (Ratio total observed damage to total predicted damage).

References

Campo, B.D.C. and Antonio, Katrien (2023). Insurance pricing with hierarchically structured data an illustration with a workers' compensation insurance portfolio. Scandinavian Actuarial Journal, doi: 10.1080/03461238.2022.2161413

Wüthrich, M. V. (2020). Bias regularization in neural network models for general insurance pricing. European actuarial journal 10(1), 179–202.

Examples

fit = hierCredGLM(Y ~ area + (1 | VehicleType / VehicleBody), dataCar, weights = w,
 p = 1.75, epsilon = 1e-6)
BalanceProperty(fit)

actuaRE documentation built on March 31, 2023, 10:16 p.m.