Ground Up Frequency only predicts well for low deductibles

ChrisWaller26 / bayesact

A combined frequency-severity model in BRMS which allows for left-censoring at deductibles.

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Ground Up Frequency only predicts well for low deductibles #22

Closed ChrisWaller26 closed 3 years ago

ChrisWaller26 commented 3 years ago

If deductibles are below $1000, the from ground up lambda parameters are predicted accurately. However, if the deductibles go up to 10k-100k, the predicted lambda is over 1000. Is this an error in our Stan code or a fundamental issue with the approach?