Derive a modified formula for E(S) and Var(S), where S denotes the total claim size, when the number of claims per year has a Negative Binomial distribution with parameters p and k. Show all your steps clearly giving reasons. For what values of k and p can you get quite different results for E(S) from that of the homogeneous Poisson case?
Derive a modified formula for E(S) and Var(S), where S denotes the total claim size, when the number of claims per year has a Negative Binomial distribution with parameters p and k. Show all your steps clearly giving reasons. For what values of k and p can you get quite different results for E(S) from that of the homogeneous Poisson case?
MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
Section: Chapter Questions
Problem 1P
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Transcribed Image Text:Derive a modified formula for E(S) and Var(S), where S denotes the total
claim size, when the number of claims per year has a Negative Binomial
distribution with parameters p and k. Show all your steps clearly giving reasons.
For what values of k and p can you get quite different results for E(S) from that
of the homogeneous Poisson case?
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