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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

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)
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...
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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
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