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We suppose S ~ Poisson (0), with ~ Gamma(a = 1.2, a = 1.2). Two insureds had the following prior (a priori) premiums and claims experience: Insured 2 Insured 1 Years Xt Claims Xt Claims 1 0.150 0 0.275 0 2 0.175 1 0.350 1 3 0.250 0 0.350 0 4 0.250 4 0.200 4 5 0.100 0 0.222 0 6 0.122 1 0.230 1 7 0.200 ? 0.200 ? Determine the credibility factor Z given to the experience of insured 1 and 2, and the premium to be given to insured 1 and 2 if they both have the same profile at time 7.

We suppose S ~ Poisson (0), with ~ Gamma(a = 1.2, a = 1.2). Two insureds had the following prior (a priori) premiums and claims experience: Insured 2 Insured 1 Years Xt Claims Xt Claims 1 0.150 0 0.275 0 2 0.175 1 0.350 1 3 0.250 0 0.350 0 4 0.250 4 0.200 4 5 0.100 0 0.222 0 6 0.122 1 0.230 1 7 0.200 ? 0.200 ? Determine the credibility factor Z given to the experience of insured 1 and 2, and the premium to be given to insured 1 and 2 if they both have the same profile at time 7.

MATLAB: An Introduction with Applications
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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We suppose S ~ Poisson (0), with ~ Gamma(a = 1.2, a = 1.2). Two insureds had the following prior (a priori) premiums and claims experience: Insured 2 Insured 1 Years Xt Claims Xt Claims 1 0.150 0 0.275 0 2 0.175 1 0.350 1 3 0.250 0 0.350 0 4 0.250 4 0.200 4 5 0.100 0 0.222 0 6 0.122 1 0.230 1 7 0.200 ? 0.200 ? Determine the credibility factor Z given to the experience of insured 1 and 2, and the premium to be given to insured 1 and 2 if they both have the same profile at time 7.
Transcribed Image Text:We suppose S ~ Poisson (0), with ~ Gamma(a = 1.2, a = 1.2). Two insureds had the following prior (a priori) premiums and claims experience: Insured 2 Insured 1 Years Xt Claims Xt Claims 1 0.150 0 0.275 0 2 0.175 1 0.350 1 3 0.250 0 0.350 0 4 0.250 4 0.200 4 5 0.100 0 0.222 0 6 0.122 1 0.230 1 7 0.200 ? 0.200 ? Determine the credibility factor Z given to the experience of insured 1 and 2, and the premium to be given to insured 1 and 2 if they both have the same profile at time 7.
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