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Chapter 15: Section 3.1

J

jensen

Member
Hi

In the example, i assume the median dev factor is determined across all dev years and factors from different dev years are then benchmarked against this median.

Is this fair? Shouldn't the factors be benchmarked against the median of each dev year rather than the entire period?
 
Dear Jensen,

Your assumption is incorrect and you are therefore quite right to question it!

There will be a different median for each development period, as each column is considered separately. Therefore you have in fact answered your own question. :)

Kind regards,

Katherine.
 
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