An insurer has data on losses for four policyholders for 7 years. The loss from the h policyholder for year j is X. You are given: 4 7 ΣΣ(Χ,- )-33.60 E(X,- x)' = 3.30 %3D Using nonparametric empirical Bayes estimation, calculate the Bühlmann credibility facto for an individual policyholder. (A) Less than 0.74 (B) 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
An insurer has data on losses for four policyholders for 7 years. The loss from the h policyholder for year j is X. You are given: 4 7 ΣΣ(Χ,- )-33.60 E(X,- x)' = 3.30 %3D Using nonparametric empirical Bayes estimation, calculate the Bühlmann credibility facto for an individual policyholder. (A) Less than 0.74 (B) 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)
10th Edition
ISBN:9780134753119
Author:Sheldon Ross
Publisher:Sheldon Ross
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![An insurer has data on losses for four policyholders for 7 years. The loss from the 1n
policyholder for year j is X.
You are given:
4 7
EE(xy- X,)*:
=1 j=l
= 33.60
ΣΧ-x-330
Using nonparametric empirical Bayes estimation, calculate the Bühlmann credibility facto
for an individual policyholder.
(A)
Less than 0.74
(B)
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](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fc1dc1e8a-2f92-405b-ac65-6118ad2b4bd3%2Ff246686f-e5c4-4a4d-8537-614cfec8c2db%2F2nbp16m_processed.jpeg&w=3840&q=75)
Transcribed Image Text:An insurer has data on losses for four policyholders for 7 years. The loss from the 1n
policyholder for year j is X.
You are given:
4 7
EE(xy- X,)*:
=1 j=l
= 33.60
ΣΧ-x-330
Using nonparametric empirical Bayes estimation, calculate the Bühlmann credibility facto
for an individual policyholder.
(A)
Less than 0.74
(B)
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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