Empirical Analysis of Claims Development Trapezoids following Benford’s Law
Abstract
In this paper we make an empirical analysis of a wide range of claims development
trapezoids following Benford’s law. In particular we determine Benfors’s law for
different characteristic factors depending on claims development triangles/trapezoids.
These characteristic factors are the cumulative claims payments, the incremental
claims payments and the individual development factors. For each characteristic factor hypothesis testing is done for verifying/rejecting Benford’s law.
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DOI: http://dx.doi.org/10.24294/fsj.v1i2.420
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