1. You believe claims are exponentially distributed with a mean of 0. 0 is distributed as an inverse gamma distribution with mean 50 and standard deviation of 10. You observed three values, 45, 47 and 49. Calculate the expected value of the next claim. 2. Repeat #1 with the uninformative vague prior f(0): 1

A First Course in Probability (10th Edition)
10th Edition
ISBN:9780134753119
Author:Sheldon Ross
Publisher:Sheldon Ross
Chapter1: Combinatorial Analysis
Section: Chapter Questions
Problem 1.1P: a. How many different 7-place license plates are possible if the first 2 places are for letters and...
icon
Related questions
Question

Please do the following questions with full working out. 

1. You believe claims are exponentially distributed with a mean of 0. 0 is distributed as
an inverse gamma distribution with mean 50 and standard deviation of 10. You observed
three values, 45, 47 and 49. Calculate the expected value of the next claim.
2. Repeat #1 with the uninformative vague prior f(0):
1
Transcribed Image Text:1. You believe claims are exponentially distributed with a mean of 0. 0 is distributed as an inverse gamma distribution with mean 50 and standard deviation of 10. You observed three values, 45, 47 and 49. Calculate the expected value of the next claim. 2. Repeat #1 with the uninformative vague prior f(0): 1
Expert Solution
steps

Step by step

Solved in 2 steps

Blurred answer
Recommended textbooks for you
A First Course in Probability (10th Edition)
A First Course in Probability (10th Edition)
Probability
ISBN:
9780134753119
Author:
Sheldon Ross
Publisher:
PEARSON
A First Course in Probability
A First Course in Probability
Probability
ISBN:
9780321794772
Author:
Sheldon Ross
Publisher:
PEARSON