The objective of this article is to compare several risk classification methods for claim severity data by using weighted equation which is written as a weighted difference between the observed and fitted values. The weighted equation will be applied to estimate claim severities which is equivalent to the total claim costs divided by the number of claims.
Ismail, Noriszura and Jemain, Abdul Aziz
"A Comparison of Risk Classification Methods for Claim Severity Data,"
Journal of Modern Applied Statistical Methods:
2, Article 25.
Available at: http://digitalcommons.wayne.edu/jmasm/vol5/iss2/25