A flow of claims arriving at an insurance company is represented by a homogeneous Poisson process N in continuous time. (For now, we just count the number of claims arrived by time t.) Suppose that the mean inter-arrival time is equal to 1/λ, where X is a positive parameter. Let the unit of time be an hour. Question 29 How would the adjustment coefficient under consideration change if the mean time between consecutive claims is doubled? will not change will become of the original answer. Impossible to predict will double

A First Course in Probability (10th Edition)
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A flow of claims arriving at an insurance company is represented by a homogeneous Poisson process Nt in continuous time. (For
now, we just count the number of claims arrived by time t.) Suppose that the mean inter-arrival time is equal to 1/A, where A is a
positive parameter. Let the unit of time be an hour.
Question 29
How would the adjustment coefficient under consideration change if the mean time between consecutive claims is doubled?
will not change
will become of the original answer.
Impossible to predict
will double
Question 30
Assume now that is arbitrary. Does the adjustment coefficient y depend on 0 ?
No
Yes
Transcribed Image Text:A flow of claims arriving at an insurance company is represented by a homogeneous Poisson process Nt in continuous time. (For now, we just count the number of claims arrived by time t.) Suppose that the mean inter-arrival time is equal to 1/A, where A is a positive parameter. Let the unit of time be an hour. Question 29 How would the adjustment coefficient under consideration change if the mean time between consecutive claims is doubled? will not change will become of the original answer. Impossible to predict will double Question 30 Assume now that is arbitrary. Does the adjustment coefficient y depend on 0 ? No Yes
Question 31
Find the limit of y as 0 → 0
Does not exist
1
0
8
Transcribed Image Text:Question 31 Find the limit of y as 0 → 0 Does not exist 1 0 8
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