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/λ, where X is a positive parameter. Let the unit of time be an hour. Question 23 Which expression below may serve as a representation for S(t) ? Are the processes K₁1 and Kt2 independent? Kt1 + Kt2. No. Kt1 +Kt2. Yes. 2Kt1 + 5Kt2. Yes. K+Kt2, No.

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