I work in Worker's Compensation, I have passed 2 exams, and I am studying for the VEE exams. I am also the only actuary in my company, so help is not easy to come by. I have a question. I frequently create loss triangles, and I am learning to forcast those triangles using regression. However, the books do a poor job of explaining some of the formatting issues.
I understand that you must be using incremental triangles, divide by the volume, and take the log of the values before the regression. I have two questions. First, when dividing by the volume, do you use # claims, # of policies, or does it matter. Second, how do you get back to monetary values after the regression? Do you simply take the exponent?
I would appreciate anyone's help.