Suppose that a risk S follows a collective model where N has a geometric distribution of parameter p = 1/2, and the amount of claims has the probability function that appears in the table below. Use Panjer formula to find the probability %3D function of S. 1 2 fr| 1/2 1/2

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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Suppose that a risk S follows a collective
model where N has a geometric
distribution of parameter p = 1/2, and the
amount of claims has the probability
function that appears in the table below.
Use Panjer formula to find the probability
function of S.
r
1
fr 1/2 1/2
Transcribed Image Text:Suppose that a risk S follows a collective model where N has a geometric distribution of parameter p = 1/2, and the amount of claims has the probability function that appears in the table below. Use Panjer formula to find the probability function of S. r 1 fr 1/2 1/2
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