Frequency (number) of individual claims in each period, XE {0, 1, 2}, follow the binomial distribution (2, 0) and 0 follow distribution U(0, 1). Prediction of the frequency of claims in future periods using the Buhlmann. method c- ZR+ (- Z)H, Z = credibility factor, R = current observation, and H= prior mean process. a) Calculate E(0), E(0) and Var(0) b) Specify E(X0) and Var(X|0) c) Calculate the expected process variance E. Var. (x)) and the conditional mean variance Var (E. (X))) d) Calculate the ratio of the expected process variance to the E. (Var (X 8)) conditional mean variance, *= Vary (E (X 8))

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