11-09-2016 06:42 PM
You should explain what severity means in terms of your available data. This is likely a topic that has many definitions and specific industries or even your organization may have a different take than others.
11-10-2016 06:41 AM
i am using motor insurance data , the claim severity is given to me in that data set. based on that i have to model severity. data base is attached with question , i have tried proc severity procedure using gamma distribution:
proc severity data=libish.simulatedwithlog crit=aicc ;
scalemodel logduration / dfmixture =full ;
dist gamma ;
and also applied usual gamma model using genmod procedure .
proc genmod data=libish.dataset2;
class premiumclass age zone;
model severity=premiumclass age /dist=gamma link=log type3;
actually how to conclude gamma model is suitable for this data?