Question: Please solve while showing the steps clearly The Gamma distribution with mean p and variance u'/o has density function (> > 0) uT(u) (a) Show

Please solve while showing the steps clearly The Gamma distribution with

Please solve while showing the steps clearly

The Gamma distribution with mean p and variance u'/o has density function (> > 0) u"T(u) (a) Show that this may be written in the form of an exponential family. (b) Use the properties of exponential families to confirm that the mean and variance of the distribution are u and p jo. [9] (ii) Explain the difference between a continuous covariate and a factor. (tii) A company is analysing its claims data on a portfolio of motor policies, and uses a gamma distribution to model the claim severities. The company uses three rating factors: policyholder age (as a continuous variable): policyholder gender; vehicle rating group (as a factor) (a) Write down the form of the linear predictor when all rating factors are included as main effects. (b) State how the linear predictor changes if an interaction between policyholder age and gender is included. 141 [Total 16]

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Economics Questions!

2. (Gibbs samplerPart I) This is le rst part of a two part question on the Gibbs sampler. In the next problem, you will use the Gibbs sampler for a Bayesian parametric estimation problem. I give you...

Write 2 paragraphs about Macro risks and the term structure of interest rates article. No max word count, page count, or formatting requirements but has to be submit to my tutor's work as my own....

1. A player throws a fair die and simultaneously flips a fair coin. If the coin lands heads, then she wins twice, and if tails, then one-half of the value that appears on the die. Determine her...

In this question you will be asked to reflect on a project you have been involved in or observed, in which a design evolved, or could have evolved, through applying a theory of user behaviour. You...

Consider the trigonometric series a0 2 + X r=1 (ar cos rx + br sin rx) where a0, a1, a2, . . . and b1, b2, . . . are constants and suppose that f(x) is a periodic function of x with period 2. (a)...

In a Hopfield neural network configured as an associative memory, with all of its weights trained and fixed, what three possible behaviours may occur over time in configuration space as the net...

Exercises Chapter 2 2.1 Marginal and conditional probability: The social mobility data from Section 2.5 gives a joint probability distribution on (Y1 , Y2 )= (father's occupation, son's occupation)....

IOE 419 Mark S. Daskin Service Operations Management IOE Department Winter, 2017 University of Michigan Problem set 4 DUE: MONDAY - February 20, 2017 Points: 100 points total Problem 1: Babette has...

1. Calculate the sample size needed given these factors: one-tailed t-test with two independent groups of equal size small effect size (see Piasta, S.B., & Justice, L.M., 2010) alpha =.05 beta = .2...

1 2.3 Definition of a Discrete Probability Function Definition: Let S be a discrete sample space from some experiment. A function P, defined on all events in S, is said to be a probability function...

What will a spring scale read for the weight of a 55-kg woman in an elevator that moves (a) Upward with constant speed of 6.0m/s. (b) Downward with constant speed of 6.0m/s (c) Upward with...

Why do you think the Denvers Favorite Animal campaign was so successful? What lessons might you learn about promotional planning from this case? If you were on the Grey team, what would you do next...

0 Table 2 First Year Financial Projections Description Monthly Cost Annual Cost Salaries $12,500 $150,000 - Director - $70,000 - Content Developer - $55,000 - Marketing - $25,000 Employee Benefits...

Saved Help An assembly line is to operate eight hours per day with a desired output of 236 units per day. The following table contains information on this product's task times and precedence...

4. In the next communication situation you are in, already think through three different communication strategies, which will make you achieve greater flexibility. Then practice on these as soon as...

2. Now imagine a real situation in your workplace or home situation where someone gives you feedback. a. Did you perceive the feedback as a hidden criticism? b. Did you perceive the feedback as a...

2. In this chapter, the reader should reflect on the following concepts: feedback and flexibility as a basis for change, intention and communication as a basis for change and behavioural patterns as...