I'm reading the ratemaking PDF by modelin and I'm not understanding the parallelogram method.
On page 87 on the PDF viewer(or actual page 75 on the document), he goes through an example and says that we take the area 1/2 base * height of area 1, which is jan 1 through july 1 2011. but looking at the drawing, isn't that area 2?
On page 87 on the PDF viewer(or actual page 75 on the document), he goes through an example and says that we take the area 1/2 base * height of area 1, which is jan 1 through july 1 2011. but looking at the drawing, isn't that area 2?
beginning question about parallelogram method