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An insurer has data on losses for four policyholders for 7 years. The loss from the ™ policyholder for year j is Xy. You are given: 4 7 E{x,- X.)' = 3360 Ż(X,- x)° = 3.30 Using nonparametric empirical Bayes estimation, calculate the Bühlmann credibility factor 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 ™ policyholder for year j is Xy. You are given: 4 7 E{x,- X.)' = 3360 Ż(X,- x)° = 3.30 Using nonparametric empirical Bayes estimation, calculate the Bühlmann credibility factor 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)
A First Course in Probability (10th Edition)
10th Edition
ISBN:9780134753119
Author:Sheldon Ross
Publisher:Sheldon Ross
Chapter1: Combinatorial Analysis
Section: Chapter Questions
Problem 1.1P: a. How many different 7-place license plates are possible if the first 2 places are for letters and...
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An insurer has data on losses for four policyholders for 7 years. The loss from the " policyholder for year j is X. You are given: 4 7 2 ΣΣ(Χ)-Χ)-33.60 =1 j=1 Σ(Χ- x- 3.30 #1 Using nonparametric empirical Bayes estimation, calculate the Bühlmann credibility factor 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
Transcribed Image Text:An insurer has data on losses for four policyholders for 7 years. The loss from the " policyholder for year j is X. You are given: 4 7 2 ΣΣ(Χ)-Χ)-33.60 =1 j=1 Σ(Χ- x- 3.30 #1 Using nonparametric empirical Bayes estimation, calculate the Bühlmann credibility factor 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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