Mathematical Limits to the Judgment Factor in Fire Schedule Rating [Discussion]

The present paper by Mr. Mclntosh joins a growing list of recent contributions to the Society which are united in the belief that real value results from approaching a given subject of actuarial interest by theoretical means. With such a viewpoint, this reviewer is heartily in accord. The actuary dealing with the charges of a fire rating schedule is faced with a mass of unknowns. To find order and useful relationships within this mass, the author sets up a mathematical model involving a system of linear equations, in which the number of unknowns exceeds the number of equations.