An insurance company has 1000 policyholders distributed over the three states of the no-claims discount process with
Question:
An insurance company has 1000 policyholders distributed over the three states of the no-claims discount process with transition matrix given by Eq. (10.34). The initial distribution is,
• 100 in State 1
• 600 in State 2
• 300 in State 3
Determine the distribution of policyholders 4 years later.
Transcribed Image Text:
P = 0.1 0.9 0 0.1 0 0.9 0 0.1 0.9 (10.34)
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The relevant transition matrix is that obtained in Ex...View the full answer
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Related Book For
Introduction To Actuarial And Financial Mathematical Methods
ISBN: 9780128001561
1st Edition
Authors: Stephen Garrett
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