10. For an insurance coverage, the number of claims per year has a Bernoulli distribution with...
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10. For an insurance coverage, the number of claims per year has a Bernoulli distribution with mean e which varies by policyholder and has mean 0.5 and variance 0.04. A certain policyholder begins coverage June 1, 2017. The policyholder experiences no claims in 1997 and 2018, and 1 claim in 2019. Only experience up to September 30, 2019 has been recorded. Determine the Bühlmann-Straub credibility estimate of the number of claims in 2020 for this policyholder. 10. For an insurance coverage, the number of claims per year has a Bernoulli distribution with mean e which varies by policyholder and has mean 0.5 and variance 0.04. A certain policyholder begins coverage June 1, 2017. The policyholder experiences no claims in 1997 and 2018, and 1 claim in 2019. Only experience up to September 30, 2019 has been recorded. Determine the Bühlmann-Straub credibility estimate of the number of claims in 2020 for this policyholder.
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Related Book For
Probability and Statistical Inference
ISBN: 978-0321923271
9th edition
Authors: Robert V. Hogg, Elliot Tanis, Dale Zimmerman
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