Buhlmann Straub credibility - Typo?

Discussion in 'SP8' started by Exam_Machine, Mar 17, 2010.

  1. Exam_Machine

    Exam_Machine Member

    Just reading through the assumptions for the B-S :)D ) credibility model.
    It says that Vi times the expectation of Xi given theta i is independent of i.
    (bottom of page 47 of chapter 18).

    I cant really see how this is relevant to the derivation that follows. Should that last bullet point not say that Vi times the variance of Xi given theta i is independent of i? This makes more sense as it relates to the definition of sigma squared of theta, and we use this expression to define phi later on.
     
    Last edited by a moderator: Mar 17, 2010
    Exam_Machine, Mar 17, 2010
    #1
  2. Duncan Brydon

    Duncan Brydon ActEd Tutor Staff Member

    We have issued a correction to the Buhlmann-Straub model section within
    chapter 18 to enhance the Core Reading. On the main page of the ActEd
    website under Products, go to 'Core Study Materials' and then choose
    'Corrections' in the menu. If you scroll down, you will find the
    corrections for ST8.

    I hope this helps.

    Duncan
     
    Duncan Brydon, Mar 19, 2010
    #2

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