HO Indication Problem
How come the average written date is in the middle of the calendar year (see attached). Isn't the average written date = average earned date - policy_len/2?
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How come the average written date is in the middle of the calendar year (see attached). Isn't the average written date = average earned date - policy_len/2?
Comments
I would need to see the given information and the rest of the solution before I could answer. Can you include a link to where you got this?
Sorry for the wait. See attached, pp4.
I will need to review this problem and get back to you.
If annual policies are written uniformly over the year then the average written date for a particular calendar year, say 2023, is the middle of the year, Jul 1, 2023.
You can also get there by calculating the average earned date first, which would be Jan 1, 2024, and then subtract 0.5 x (policy term) which equals 6 months, which gets you back to the average written date of Jul 1, 2023, same as before.