Number of losses follows a negative binomial distribution with parameters r = 5 and ß = 2. Losses follow a Pareto distribution with parameters a = 4 and 0 = 200. Losses and number of losses are all independent. Pr(S¹ ≤ F) = 0.95 by using normal approximation, where F is the minimum find the insurer needs to hold. Determine F.P
Number of losses follows a negative binomial distribution with parameters r = 5 and ß = 2. Losses follow a Pareto distribution with parameters a = 4 and 0 = 200. Losses and number of losses are all independent. Pr(S¹ ≤ F) = 0.95 by using normal approximation, where F is the minimum find the insurer needs to hold. Determine F.P
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![Number of losses follows a negative binomial distribution with parameters
r = 5 and ß = 2.
Losses follow a Pareto distribution with parameters a = 4 and 0 = 200.
Losses and number of losses are all independent.
Pr(S¹ ≤ F) = 0.95 by using normal approximation, where F is the minimum
find the insurer needs to hold.
Determine F.P](https://content.bartleby.com/qna-images/question/c93edc57-e8e5-4f42-a904-83578582f097/2fd77af0-25b7-492e-8b68-8fe3a9b3fc60/roby5ke_thumbnail.png)
Transcribed Image Text:Number of losses follows a negative binomial distribution with parameters
r = 5 and ß = 2.
Losses follow a Pareto distribution with parameters a = 4 and 0 = 200.
Losses and number of losses are all independent.
Pr(S¹ ≤ F) = 0.95 by using normal approximation, where F is the minimum
find the insurer needs to hold.
Determine F.P
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