Originally Posted by crabber
Well the question specifically said to use a straight average. I don't understand why people are getting their panties in a bunch over calculating a few LDFs.
To play devil's advocate a bit here, practical attempts to shorten the arithmetic and algebra involved sometimes blow up in a question writer's face. For example, they give you an intermediate value to save on calculation time, but don't label it very well, and it ends up confusing candidates and resulting in a bunch of appeals and multiple accepted solutions.
I didn't sit for this part of the test, but it was widely said after the exam (two people at my company + actuarial outpost) that the reserving portion had a TON of link ratio calculations that were completely unnecessary.