Reference no: EM133099163

You are given the following information concerning past workers compensation losses for Doom Factory, Inc (DFI):

Accident Year	Period	Ultimate WC Frequency	Number of Employees	Incident Rate
2013	1	6,832	14,350
2014	2	6,984	14,750
2015	3	7,068	15,005
2016	4	7,253	15,460
2017	5	7,892	16,893
2018	6	8,124	17,439
2019	7	8,250	17,821

Accident Year	Period	Ultimate WC Frequency	Ultimate WC Losses (000's)	Average Severity
2013	1	6,832	8,325
2014	2	6,984	11,289
2015	3	7,068	16,036
2016	4	7,253	24,012
2017	5	7,892	34,213
2018	6	8,124	50,183
2019	7	8,250	73,565

Given this information, compute the following information for DFI:

1. The incident rates for 2013-2019.  Using these rates, fit an estimation model and provide a forecast for the incident rate for 2020.  Show your model.  Also show any graphs necessary to justify the model you create.
2. The average severity for 2013-2019.  Using these figures, fit an estimation model and provide a forecast for the average severity for 2020.  Show your model.  Also show any graphs necessary to justify the model you create.
3. DFI estimates that it will have 18,150 workers in 2019.  Based on the forecasts you determine for the incident rate and average severity, give a forecast of the WC losses for 2020.  Show your calculations.

The answer to the above questions will be part of your forecasting quiz.  You are required to work on this assignment independently.  Each student should send me a copy of his or her own completed Excel file to receive credit for this quiz.  Failure to send me your file will result in a zero for your grade on the quiz.