Write a brief report providing the requested information and describing the computations (estimation models) you used to obtain the results.

Forecasting Assignment

You are given the following information on past workers compensation losses for XYZ Company:

Given this information, compute the following information for XYZ Company:

1. The incident rates for 2014 through 2020. Using these fit an estimation model and provide a forecast for the incident rate in 2021.  Show your estimation model.  Provide a plot of the data and comment on the fit of the model.  Also plot the transformed data if you end up transforming them.
2. The average severity for each year from 2014 to 2020. Using these fit an estimation model and provide a forecast for the average severity in 2021.  Show your estimation model.  Provide a plot of the data and comment on the fit of the model.  Also plot the transformed data if you end up transforming them.
3. XYZ Company estimates that it will employ 21,500 workers in 2021. Based on the forecasts you determine for incident rate and average severity, give a forecast of total WC losses for 2021.  Show your calculations.
4. You should write a brief report providing the requested information and describing the computations (estimation models) you used to obtain the results. Be sure to provide all of the information requested in items 1 through 3.  Please submit your completed workbook (Excel) and your report (Word) in the Forecasting Assignment folder in eLC.

Excel Regressions & VLab How-To

For Windows,

Open Excel => File => Options => Add-Ins => Analysis Toolpak => Go => Analysis Toolpak => OK

Underneath the Data tab you will find Data Analysis that includes a Regression option.