Abstract

Journal of Actuarial Practice

Volume 7, Numbers 1 and 2, 1999


Credibility Calculations Using Analysis Of Variance Computer Routines

H. Dennis Tolley, Michael D. Nielsen and Robert Bachler

Abstract

In this paper we present a method of calculating Bühlmann-Straub credibility factors using standard statistical techniques developed for the analysis of variance. Emphasis is placed on using readily available statistical packages such as SAS and SPSS. Additionally many other computational tools such as EXCEL can be programmed to make such calculations. An example and some sample SAS programs are provided.

Key words and phrases: Bühlmann-Straub credibility factors, empirical Bayes, borrowing strength, random ANOVA model.

Dennis Tolley

Department of Statistics

Brigham Young University

Provo UT 84602

 

Michael D. Nielsen

University of Pensylvania

Wharton School of Business

3641 Locust Walk

Philadelphia PA 19104

 

Robert Bachler

Educators Mutual Insurance Association

852 East Arrowhead Lane

Murray UT 84107


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