R-based question. Modify the R code in Appendix A so that it is able to deal with

(a) a negative binomial distribution for the frequency;

(b) a spliced lognormal/

GPD severity distribution;

(c) a generic severity distribution, entered as a vector of N N N N

N percentiles , 1 1

2

+ + 1 1 +





 

  .

Hints: The following function can be used to generate an N_sim claim counts from an negative binomial distribution with the correct mean and variance-to-mean ratio by a suitable choice of

a, b:

claim_count = rpois(N_sim,rgamma(N_sim,shape =

a,scale = b))

The following function creates a spliced lognormal/GPD distribution from two loss vectors analogous to indiv.losses in the code (one based on a lognormal and the other based on a GPD), the splicing point being GPD_mu:

Indiv.losses = ifelse(logn_vector