# Before actually applying the Chain Ladder technique it is necessary to check
# whether the Development Factors are correlated
# Apply the function to the triangle and save the output into the variable test
test <- dfCorTest(RAA)
# Plot the confidence interval and the test metric
plot(test)
# The metric is within the confidence interval, therefore the Development Factors are nor correlated
# Print the summary table
summary(test)
# Print only the main outcomes
print(test)
# The test has returned a negative outcome. This means that the triangle is
# not affected by Development Factor Correlation and therefore the chain ladder method
# can be applied.
Run the code above in your browser using DataLab