1. There are 600 insureds and the number of claims submitted by them is given as follows: 0 claims submitted by 430 insureds, 1 claim submitted by 120 insureds, 2 claims submitted by 40 insureds, 3 claims submitted by 10 insureds and there were no 4 or more claims submitted. Annual claim counts for each insured are assumed to follow a Poisson distribution. Estimate the number of claims submitted by an insured in the next year by an insured who submitted 3 claims in the current year, assuming that the credibility is calculated using empirical Bayes semiparametric methods.

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1. There are 600 insureds and the number of claims submitted by them is
given as follows: 0 claims submitted by 430 insureds, 1 claim submitted by 120
insureds, 2 claims submitted by 40 insureds, 3 claims submitted by 10 insureds
and there were no 4 or more claims submitted.
Annual claim counts for each insured are assumed to follow a Poisson
distribution. Estimate the number of claims submitted by an insured in the next
year by an insured who submitted 3 claims in the current year, assuming that the
credibility is calculated using empirical Bayes semiparametric methods.
Transcribed Image Text:1. There are 600 insureds and the number of claims submitted by them is given as follows: 0 claims submitted by 430 insureds, 1 claim submitted by 120 insureds, 2 claims submitted by 40 insureds, 3 claims submitted by 10 insureds and there were no 4 or more claims submitted. Annual claim counts for each insured are assumed to follow a Poisson distribution. Estimate the number of claims submitted by an insured in the next year by an insured who submitted 3 claims in the current year, assuming that the credibility is calculated using empirical Bayes semiparametric methods.
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