These rate hike stats are a joke. The rate increases are actually higher than they market it to be. What they do is that they raise the rates for a cluster of the market at a higher percentage (lets say 8%), and then they also lower the rate for a smaller segment of the market (lets say -.03%). Then they tell the agents that the company’s rate increase will be (0.08 + -0.03)/2 = 2.5%
I understand weighted averages; don’t be fooled into thinking that what you are being fed are the true stats.
There are many different tables showing the average rate increases per 50 states and NONE of them are the same. What IS marketed to us is NOT the actual weighted averages, but a simple arithmetic average (you’re not even getting the expected value or a standard deviation with the stats).
You don’t actually believe that you’re getting the true data?
These rate hike stats are a joke. The rate increases are actually higher than they market it to be. What they do is that they raise the rates for a cluster of the market at a higher percentage (lets say 8%), and then they also lower the rate for a smaller segment of the market (lets say -.03%). Then they tell the agents that the company’s rate increase will be (0.08 + -0.03)/2 = 2.5%
“There are lies, damned lies, and statistics.”
For all the math buffs, I meant to say: “and then they also lower the rate for a smaller segment of the market (lets say [-3%]).”
as an actual math buff.. that is also wrong. Please see weighted average.
I understand weighted averages; don’t be fooled into thinking that what you are being fed are the true stats.
There are many different tables showing the average rate increases per 50 states and NONE of them are the same. What IS marketed to us is NOT the actual weighted averages, but a simple arithmetic average (you’re not even getting the expected value or a standard deviation with the stats).
You don’t actually believe that you’re getting the true data?
this is so nonsensical i don’t know where to begin…