[R] Generalized linear models (GLM)

Hi I got a dataset loss max.loss grp 1 10 50 2 2 15 33 1 3 18 49 2 4 33 38 1 5 8 50 3 6 19 29 1 7 22 51 4 8 50 50

Re: [R] Generalized linear models (GLM)

I think you are off-track because max.loss does not sound like a proper Y variable. Because max.loss is an amount that is known, in the insurance applications I have seen it would have been modeled within an offset term. Many of the examples have used number of ships or buildings or the

Re: [R] Generalized linear models (GLM)

Actually both max.loss and loss are known values (in dollars). I'm very much doubt, what to choose. glm(max.loss~loss,family=gaussian(link=identity) or glm(formula = sum ~ claims * as.factor(grp), family = gaussian(link = identity)) or glm(loss~max.loss,family=gaussian(link=identity) we

Re: [R] Generalized linear models (GLM)

Although both are known now, there is a time element involved in which one, max.loss was fixed at the time of underwriting and loss was unknown at that time. This *is* an insurance question is it not? Wouldn't the question be: Can one use the group variable to estimate the proportion of