2. (5 marks) Suppose that the distribution of claim frequency N and claim severity X are...
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2. (5 marks) Suppose that the distribution of claim frequency N and claim severity X are given as following. N012 X 1 2 3 Prob. 0.5 0.3 0.2 Prob. 0.4 0.4 0.2 (A) Calculate E[X₁ + X₂] assuming that X, are i.i.d, with the same distribution of X k j=1 Compute P(S > 2). (B) Let S = ΣX,, given that X, are i.i.d, with the same distribution of X and are independent of N. N the the ou 2. (5 marks) Suppose that the distribution of claim frequency N and claim severity X are given as following. N012 X 1 2 3 Prob. 0.5 0.3 0.2 Prob. 0.4 0.4 0.2 (A) Calculate E[X₁ + X₂] assuming that X, are i.i.d, with the same distribution of X k j=1 Compute P(S > 2). (B) Let S = ΣX,, given that X, are i.i.d, with the same distribution of X and are independent of N. N the the ou
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Answer rating: 100% (QA)
A To calculate EX X we first need to find the joint probability mass function of X and X Since X and X are iid with the same distribution as X we can ... View the full answer
Related Book For
Understanding Basic Statistics
ISBN: 9781111827021
6th Edition
Authors: Charles Henry Brase, Corrinne Pellillo Brase
Posted Date:
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