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 > is a positive parameter. Let the unit of time be an hour. Question 8 What is E{N₁} ? (In N₁ the sub index 1 is a time (one hour).) X 1²

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