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TESTING THE ASSUMPTIONS OF AGE-TO-AGE FACTORS
The use of age-to-age factors applied to cumulative losses has been shown to produce least-squares optimal reserve estimates when certain assumptions are met. Tests of these assumptions are introduced, most of which derive from regression diagnostic methods. Failures of various tests lead to specific alternative methods of loss development. ACKNOWLEDGEMENTfatcat:n6geuono6bbjbgjtqdgcanuaby