suppose there is a question on run-off triangles based on Bornheutter-Ferguson method, and suppose a student while calculating the outstanding estimated liability for a year doesn't shows the full the workings i.e. omits the step [ outstanding estimated liability= {premium* loss ratio*(1-1/f) }] and just straight away writes the calculated answer, and due to rounding of the development factor his answer is around 0.1$ higher than what it should be if there was no rounding done. the question asks to " calculate". so can anyone plz tell me how much will he be penalized, no working regarding how the figure is calculated is shown.
Calculate means if you get the right answer you get the full marks. However, if you don't get the right answer then we markers will look at your working. You do get penalised for rounding (usually about 1/2 mark - more if it's excessive) - but, if I remember correctly, you want 4 SF for your final answer then you'll need to be calculating to 5 SF in the question.
