Hii all Chapter-3, Loss distributions While using method of percentiles to estimate the parameters, the core reading (referring qus 5, Sept. 2009,ifoa) uses formulae: Q1= (n+2)/4 and Q3= (3n+2)/4 Is it feasible to use the alternative formulae i.e. Q1= (n+1)/4 and Q3= 3(n+1)/4 ? If not, then why? Which formulae we are expected to use in exams?
In CT3 both are permissible. However, since the CT6 exam tests the CT6 Core Reading (which only has the first formulae) you should use the first.
