| You Chose Player 2 |  | |
 |
 |
 |
|||
|
|||||
 |
 |
||||
Player 2's vast experience is given a lot of weight as a predictor of this player's future batting average being close to their past average of 0.300.
Player 1's limited experience is given little weight because an average player could easily have had the same or better experience (about a one in six chance).
Both the old and new experience rating systems act in a similar way. When firms have more experience, as measured by expected losses, more weight is given to their prior claims' costs when predicting their future claims' costs.
The science is in how L&I devised the relationship between the weights and the amount of experience, keeping in mind that more experience deserves more weight.
Read the Determining Credibility page to find out how the relationship between weight (called credibility) and experience (measured by expected losses) is determined.
