Main Calculations for Class Rates (1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) (12) $$i$$ $$e_i$$ $$l_i$$ $$L_i$$ $$c_i$$ $$Z_i$$ $$Z_iL_i +(1-Z_i)M$$ $$Z_iL_i +(1-Z_i)M \times e_i$$ $$e_i(1-Z_i)$$ $$e_i(1-Z_i)M\times C$$ $$e_i\times r_i$$ $$final \ r_i$$ $$old \ r_i$$ (Data) (Data) (1)/(2) (1)$$\times$$C Sqrt((4)/683) (3)$$\times$$(5)​+A(1.0-(5)) (6)$$\times$$(1) ((1)$$\times$$(1.0-(5))$$\times$$A (8)$$\times$$H (5)$$\times$$(3)$$\times$$(1)​+(9) (5)$$\times$$(10)/(1) Table 2 Col. 7 Class Exposure Losses Raw Rate "L" Expected Claim Count Credibility of Class Credibility Adjusted Rate Losses in Adjusted Rates Losses From Complement of Credibility Complement Losses After Off﻿-﻿Balance Correction Off-﻿Balance Corrected Total Losses Off-﻿Balance Corrected (Rate Indications Under Old (Off-﻿Balance 1 25 $78,427$ 3,137 65 31 % $1,324$ 33,097 $8,958$ 15,465 $39,605$ 1,584 $1564 2 30$ 40,687 $1,356 78 34 %$ 800 $24,012$ 10,293 $17,771$ 31,489 $1,050$ 946 3 36 $65,073$ 1,808 93 37 % $994$ 35,787 $11,752$ 20,290 $44,324$ 1,231 $1,174 4 43$ 35,837 $830 112 40 %$ 644 $27,814$ 13,314 $22,986$ 37,486 $868$ 761 5 52 $59,918$ 1,156 134 44 % $800$ 41,498 $14,941$ 25,795 $52,352$ 1,010 $946 6 62$ 72,435 $1,164 161 49 %$ 832 $51,736$ 16,567 $28,602$ 63,771 $1,025$ 983 7 75 $63,990$ 857 193 53 % $698$ 52,124 $18,089$ 31,231 $65,265$ 874 $825 8 90$ 57,059 $637 232 58 %$ 587 $52,598$ 19,353 $33,413$ 66,657 $744$ 694 9 107 $90,110$ 838 278 64 % $722$ 77,642 $20,130$ 34,753 $92,265$ 858 $853 10 129$ 46,934 $364 334 70 %$ 410 $52,902$ 20,088 $34,681$ 67,495 $523$ 485 11 155 $47,281$ 305 401 77 % $355$ 54,971 $18,759$ 32,386 $68,598$ 443 $420 12 186$ 54,427 $293 481 84 %$ 329 $61,145$ 15,482 $26,728$ 72,392 $390$ 389 13 223 $69,726$ 313 577 92 % $329$ 73,422 $9,338$ 16,122 $80,206$ 360 $389 14 267$ 64,108 $240 692 100 %$ 240 $64,108 - -$ 64,108 $240$ 283 15 321 $86,197$ 269 831 100 % $269$ 86,197 - - $86,197$ 269 $317 Total 1,801$ 932,211 $518 4,661$ 438 $789,053$ 197,065 $340,223$ 932,211 $518$ 518 Reference Values for All Classes A =Needed Overall Average Rate $518 B = Severity (Computed Outside the Table)$ 200 C = A/B = Expected Claims/Exposure 2.588 D = Total Losses in Data $932,211 E = Total Losses in Adjusted Rates$ 789,053 F = D-E = Off-Balance in  143,158 G = Total Losses in $$(1-Z_i)$$ Term \$ 197,065 H = 1.0+F/G = Off-Balance Factor 1.742