2) Aggregate claims follow a process involving a Poisson frequency distribution with a mean of 55, and a Gamma individual claim severity distribution with a = 3 and 0 = 4000. Using a normal approximation, estimate the probability that the aggregate losses will exceed 750000. (Hint: find the mean and standard deviation using conditional 750000-mean. mean/variance formulas, then use P(Z > normal distribution table.) and standard SD
2) Aggregate claims follow a process involving a Poisson frequency distribution with a mean of 55, and a Gamma individual claim severity distribution with a = 3 and 0 = 4000. Using a normal approximation, estimate the probability that the aggregate losses will exceed 750000. (Hint: find the mean and standard deviation using conditional 750000-mean. mean/variance formulas, then use P(Z > normal distribution table.) and standard SD
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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