Question: Hi there, can you please help with this question that is attached? In the Bonus-Malus system, car-insurance premiums are adjusted if the customer has ever

Hi there, can you please help with this question that is attached?

Hi there, can you please help with this question that is attached?

In the Bonus-Malus system, car-insurance premiums are adjusted if the customer has ever made a claim in the past. The increase in the premium may affect the cancellation of the insurance contract. The data below records the lifespan of insurance contracts until their cancellation is observed. Claim = 1 if there is a claim made; Cancellation = 1 if the contract is cancelled. ID Claim Lifespan Cancellation 112 99 108 ALAWN 100 95 111 Table 2: Data for Question 2 Consider the Cox proportional model A(ilx) = do(t)e for given covariate x. We want to study the effect of a claim on the cancellation of the insurance contract. (a) Explain what are the consequences of the model. (b) Write down the partial likelihood based on the dataset given in Table 2. (c) Derive the score function and observed Fisher information for B. (d) Calculate the maximum partial likelihood estimator S of the effect of the claim to the cancellation of the insurance contract

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