Cost of Automobile Insurance Claims

SUMMARY:

The original data was taken from 8942 insurance claims. The 128 rows of the claims data frame represent all possible combinations of the 3 predictor variables (columns) age , car.age , and type . An additional variable, number gives the number of claims in each cell. The outcome variable, cost is the average cost of the claims.

ARGUMENTS:

age
an ordered factor dividing the claimants into eight age groups. The levels are `17-20 < 21-24 < 25-29 < 30-34 < 35-39 < 40-49 < 50-59 < 60+'
car.age
an ordered factor dividing the claims into four groups by the age of the car. The levels are `0-3 < 4-7 < 8-9 < 10+'
type
a factor giving one of four types of car: A , B , C or D .
cost
the average cost of claims for a given combination of claimant age, car age, and claim type. Some are NA .
number
the number of claims for a given combination of claimant age, car age, and claim type. Some are 0 .

SOURCE:

Baxter, L. A., Coutts, S. M., and Ross, G. A. F. (1980) Applications of Linear Models in Motor Insurance. Proceedings of the 21st International Congress of Actuaries, Zurich, pp. 11--29.

John M. Chambers and Trevor J. Hastie, (1992) Statistical Models in S, Wadsworth and Brooks, Pacific Grove, CA, pp. 111--112.

EXAMPLES:

claims.fit <- lm(cost ~ age + type + car.age, data = claims, 
     weights = number, na.action = na.omit)