Question: Kindly help me solve this problem precisely. Well explanations required A sample of a reinsurer's payments made under a proportional reinsurance arrangement consists of the

Kindly help me solve this problem precisely. Well explanations required

Kindly help me solve this problem precisely. Well explanations required A sampleof a reinsurer's payments made under a proportional reinsurance arrangement consists of

A sample of a reinsurer's payments made under a proportional reinsurance arrangement consists of the following values, in units of thousands of pounds: 4.6. 6.8. 22.9. 1.4. 3.8. 10.2. 19.4. 32.1 If the original claim amounts are modelled using a Gamma(a, 1) distribution, and the retained proportion is 80%, find the distribution of the reinsurer's claims and hence estimate the parameters of and 1 using a method of moments approach.An insurer is considering taking out one of the following reinsurance treaties: Treary 1: a 25% quota share treaty or Treaty 2: an unlimited individual excess of loss cover with an excess point of (25,000 Find the mean of the net claim amounts paid by the insurer (a) without either treaty. (b) with Treaty I only and (c) with Treaty 2 only, assuming that the distribution of individual losses is lognormal with parameters // = 85 and of =0.64

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