A particular line of business has three types of claims. The historical probability and the number of claims for each type in the current year are: Historical Number of Claims Туре Probability in Current Year A 0.2744 112 В 0.3512 180 C 0.3744 138 You test the null hypothesis that the probability of each type of claim in the current year is same as the historical probability.

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Stats 2

Using the nonparametric empirical Bayes method, determine the Bühlmann credibility
premium for Policyholder Y.
(A)
655
(В)
670
(C)
687
(D)
703
(E)
719
A particular line of business has three types of claims. The historical probability and the
number of claims for each type in the current year are:
Historical
Number of Claims
Туре
Probability
in Current Year
A
0.2744
112
В
0.3512
180
C
0.3744
138
You test the null hypothesis that the probability of each type of claim in the current year is
same as the historical probability.
Calculate the chi-square goodness-of-fit test statistic.
(A)
Less than 9
(В)
At least 9, but less than 10
(C)
At least 10, but less than 11
(D)
At least 11, but less than 12
(E)
At least 12
Transcribed Image Text:Using the nonparametric empirical Bayes method, determine the Bühlmann credibility premium for Policyholder Y. (A) 655 (В) 670 (C) 687 (D) 703 (E) 719 A particular line of business has three types of claims. The historical probability and the number of claims for each type in the current year are: Historical Number of Claims Туре Probability in Current Year A 0.2744 112 В 0.3512 180 C 0.3744 138 You test the null hypothesis that the probability of each type of claim in the current year is same as the historical probability. Calculate the chi-square goodness-of-fit test statistic. (A) Less than 9 (В) At least 9, but less than 10 (C) At least 10, but less than 11 (D) At least 11, but less than 12 (E) At least 12
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