Predictive Modeling Applications in Actuarial Science

Chapter 8 - Linear Mixed Models


Katrien Antonio | University of Amsterdam and KU Leuven

Yanwei Zhang | University of Southern California

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We give a general discussion of linear mixed models and continue with illustrating specific actuarial applications of this type of models. Technical details on linear mixed models follow: model assumptions, specifications, estimation techniques and methods of inference. We include three worked out examples with the R lme4 package and use ggplot2 for the graphs.

Data R Code
Counts Workers Data
Credit Dannenburg Data Credit Dannenburg Code
Loss Workers Data Work Comp Loss Model
My Hachemeister Data Hachemeister Code
wcLoss Workers Freq Model