An insurer has data on losses for four policyholders for 7 years. The loss from the 1th policyholder for year j is Xy. You are given: 4 7 2 = 33.60 Σ(- x-330 %3D Using nonparametric empirical Bayes estimation, calculate the Bühlmann credibility factor for an individual policyholder. (A) Less than 0.74 (В) At least 0.74, but less than 0.77 (C) At least 0.77, but less than 0.80 (D) At least 0.80, but less than 0.83 (E) At least 0.83

A First Course in Probability (10th Edition)
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An insurer has data on losses for four policyholders for 7 years. The loss from the ith
policyholder for year j is Xy.
You are given:
4 7
2
= 33.60
È(X,- x)° = 3.30
Using nonparametric empirical Bayes estimation, calculate the Bühlmann credibility factor
for an individual policyholder.
(A)
Less than 0.74
(В)
At least 0.74, but less than 0.77
(C)
At least 0.77, but less than 0.80
(D)
At least 0.80, but less than 0.83
(E)
At least 0.83
Transcribed Image Text:An insurer has data on losses for four policyholders for 7 years. The loss from the ith policyholder for year j is Xy. You are given: 4 7 2 = 33.60 È(X,- x)° = 3.30 Using nonparametric empirical Bayes estimation, calculate the Bühlmann credibility factor for an individual policyholder. (A) Less than 0.74 (В) At least 0.74, but less than 0.77 (C) At least 0.77, but less than 0.80 (D) At least 0.80, but less than 0.83 (E) At least 0.83
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