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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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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