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 25 Compute Var{S(t)} 2X 11λt 2λt 9xt + 2(xt)²

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A:

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A: Answer: Using the given data,

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