Question 1 (5 marks) An insurance coverage covers two types of insureds, A and B. There are an equal number of insureds in each class. Claim sizes in each class follow a Pareto distribution. Number of claims and claim sizes for insureds in each class have the following distributions: Number of claims A 0 0.9 B 0.8 0.2 1 0.1 Size of claims B a A 3 50 3 60 Within each class, claim size and number of claims are independent. Calculate the Buhlmann credibility factor to assign to 2 years of data. Question 1 (5 marks) An insurance coverage covers two types of insureds, A and B. There are an equal number of insureds in each class. Claim sizes in each class follow a Pareto distribution. Number of claims and claim sizes for insureds in each class have the following distributions: Number of claims A 0 0.9 B 0.8 0.2 1 0.1 Size of claims B a A 3 50 3 60 Within each class, claim size and number of claims are independent. Calculate the Buhlmann credibility factor to assign to 2 years of data