Development of Property Rental Insurance Model
Sudarwanto, Lukita Ambarwati, Ibnu Hadi
Universitas Negeri Jakarta
Abstract
In this paper we developed insurance model on property rental business. We used Generalized Linear Models(GLM) to develop this model because the data on property rental matches to the characteristics of GLM. Analysis of the model is done by looking at the relationship between the distribution functions that are most widely used in the analysis of property rental data. The models for the relations of distribution functions are: Poisson-Gamma, Poisson-Inverse Gauss, Negative Binomial-Gamma and Negative Binomial-Inverse Gauss. The relationship between distributions is seen from the root-mean-squared error (RMSE) and absolute mean error (MAE). Simulation results show that the model formed in the case of random effects increases in standard deviation values also increases the variation value on the average estimator. This is in accordance with the condition that the addition of standard deviation means that there is an increase in the variance of the data.
Keywords: Property Rental Insurance, Generalized Linear Models
Topic: Mathematics