Question: Please help with the attached question: Summary statistics on aggregate claims for each of four car rental com- pany risks over five years are given

Please help with the attached question:

Please help with the attached question: Summary statistics on aggregate claims for

Summary statistics on aggregate claims for each of four car rental com- pany risks over five years are given in Table 5.12 below. Here X; denotes aggregate claims in year j for risk i. Using Model 1 of empirical Bayes credibility, calculate the credibility factor and credibility premium for risk 1. In your opinion, is Model 1 suitable to calculate credibility pre- miums for these risks? TABLE 5.12 Car rental company risks. Risk Xi Cj=(Xij - X.)2 6,132 5,321,643 7,465 5,974,212 ACONH 4,927 4,321,615 23,416 41,271,314

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