Question: (*) Prove that Bayesian credibility estimate when the number of claims of a client follows a Poisson distribution and the prior distribution for the

(*) Prove that Bayesian credibility estimate – when the number of claims of a client follows a Poisson distribution and the prior distribution for the Poisson rate follows a gamma distribution – can be expressed in the standard format of Equation 26.29.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Insurance Questions!

\f1) The amount of coke put into a 12oz bottle by a filling machine is a random variable having a normal distribution. The average amount put in a bottle is 12oz and the standard deviation is 5oz....

Exercises Chapter 2 2.1 Marginal and conditional probability: The social mobility data from Section 2.5 gives a joint probability distribution on (Y1 , Y2 )= (father's occupation, son's occupation)....

I would like to ask for the solution of the attached assignments, thanks. 1 AMA531 Assignment 3 Due: Tuesday, 20 Nov. 2018 1. [40 marks] A random sample of size 100 has been taken from a gamma...

Solve the financial questions. The punctuality of trains has been investigated by considering a number of train journeys. In the sample, 60%% of trains had a destination of Manchester, 20% Edinburgh...

This are exam related question, guide me through. Make it easy to follow. This all the information provided 1 The punctuality of trains has been investigated by considering a number of train...

I will be grateful for correct working The punctuality of trains has been investigated by considering a number of train journeys. In the sample, 60% of trains had a destination of Manchester, 20%...

Give clear answers. 6. Write down consumption per worker, G, as a function of k, and the savings rate. Determine the Golden Rule level of the savings rate in this economy. (6 points) Solution. C =...

Please assist me get the solutions for the following questions *1. X2,....X, are IID observations from a Gamma(a, 1) distribution, where 1 is unknown, but a is known. The prior distribution of 1 is...

The annual number of claims from a particular risk has a Poisson distribution with mean /. The prior distribution for / has a gamma distribution with o =2 and 1 =5. Claim numbers M. .... x, over the...

[3] Let X be a Poisson (2) random variable representing the number of October surprises across all Senate races for randomly chosen October's in election years. The Apple party contended there were...

Financial analysts forecast Best Buy Company (BBY) growth for the future to be 17.00 percent. Their recent dividend was $2.29. What is the value of their stock when the required rate of return is...

Why are career objectives hard to write?

A contract in which one party pays a fixed rate of interest on a notional amount in return for the return on a single stock, paid quarterly for four quarters, is a ( n ) : A ) equity swap. B )...

Consider random variables $L_{1}$ and $L_{2}$, modeling loss from two portfolios, and assume that they are jointly normal. Show that, in this case, value-at-risk is subadditive.

Distinguish between an attractive opportunity and a breakthrough opportunity. Give an example.

Explain how new opportunities may be seen by defining a firms markets more pr e cisely. Illustrate for a situation where you feel there is an opportunity namely, an unsatisfied ma r ket segmenteven...

In your own words, explain why the book suggests that you should think of marketing strategy planning as a narrowing-down process.

2 . How is data disposal similar to and different from retiring information systems?

Shamrock Company purchased machinery on January 1, 2017, for $ 97,600. The machinery is estimated to have a salvage value of $ 9,760 after a useful life of 8 years. 1. Compute 2017 depreciation...

Cash Receipts Budget and Accounts Receivable Aging Schedule Shalimar Company manufactures and sells industrial products. For next year, Shalimar has budgeted the following sales: Quarter 1 $ 4 , 6 0...