Part 1 ( 20 points)
The incidence and severity rates are given by the following formulas:
Incidence rate = N * 200,000/T
Severity rate = R * 200,000/T
where;
T = Total number of hours worked by the employees during the entire year
N= Total number of injuries occured during the entire year
R= total number of days lost during the entire year
The occupational injuries, number of days lost and total number of hours worked by employees in two different companies (Company A and Company B) are given below:
| Company A | Company B | |
| Total Number of Hours Worked by Employees in 2004 | 400,000 | 600,000 |
| Total Number of Occupational Injuries (N) | 8 | 15 |
| Total Number of Lost Days (R) | 40 | 60 |
(a) Calculate the severity rate for each company. (10 pts)
(b) Calculate the incidence rate for each company.(10 pts)
Part 2: (10 points)
Go to Bureau of Labor Statistics Web Site which is located at http://stats.bls.gov/news.release/osh.t07.htm
Answer the following questions:
(a) Which type of businness / industry division had the highest incidence rate in 2011 ?
(b) Which type of business / industry division had the lowest incidence rate in2011 ?
Part 3: (10 points)
1. Which type of accidents have the highest cost ?
2. List the types of insurance coverages that are available in New York State as part of Workers’ Compensation Program.





