Gaussian approximation (either computer-based or using numerical tables). Suppose that losses can be modelled according to the frequency/severity model described in Question 2 (frequency: Poi(4.4), severity: LogN(11.2,1.5)).

(a) Using the Gaussian approximation model, produce an estimate for the following percentiles: 50%, 75%, 80%, 85%, 90%, 95%, 98%, 99%, and 99.5%.

(b) Also, produce an estimate of the same percentiles for the ceded loss model, given that there is an EEL deductible of

£10,000. (Hint: look up the formulae for the limited expected value of the lognormal severity distribution.)