CAS Exam 7 - Mack 1994 - Standard Error for total reserve

Exams - Study Groups and Discussion CAS Exam 7
1

Hi,

I am having problem calculating the S.E for the total reserve, and I think I am applying the formula wrong. The formula for it should be :

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So, for the following triangle:

image

Would the S.E for the reserve be:

Would it be:
1000+2000+3000+4000+ 2*(230)(190+200+210+220)

10*(1/(150+160+170+180) +
11*(1/(160+170+180) +
12*(1/(170+180)) +
13/(1/180)

3

I don’t understand how you have a little i subscript outside of summation on the RHS when there is no free index on the LHS. Are you sure this formula is correct?

4

If you look at the source (page 120), LHS does not have the subscript i neither. I think it is because it is not simply a sum of the individual years? I assume you are talking about the Ri?

Is my application of the Mack formula correct?