LRfunction {ChainLadder} | R Documentation |

## Calculate the Link Ratio Function

### Description

This calculates the link ratio function per the CLFM paper.

### Usage

```
LRfunction(x, y, delta)
```

### Arguments

`x` |
beginning value of loss during a development period |

`y` |
ending value of loss during a development period |

`delta` |
numeric |

### Details

Calculated the link ratios resulting from a chainladder model over a development period indexed by (possibly vector valued) real number delta. See formula (5) in the References.

### Value

A vector of link ratios.

### Author(s)

Dan Murphy

### References

Bardis, Majidi, Murphy. A Family of Chain-Ladder Factor Models for Selected Link Ratios. *Variance*. Pending. 2013. pp.tbd:tbd

### Examples

```
x <- RAA[1:9,1]
y <- RAA[1:9,2]
delta <- seq(-2, 2, by = .1)
plot(delta, LRfunction(x, y, delta), type = "l")
```

[Package

*ChainLadder*version 0.2.18 Index]