Question: S has a compound distribution Total claim amount per policyholder (but not compound Poisson): for each policy i, we have S; = 1 Yi,k,
S has a compound distribution Total claim amount per policyholder (but not compound Poisson): for each policy i, we have S; = 1 Yi,k, with Yi,k i.i.d. following Poisson distribution with parameter A, and the claim numbers N are i.i.d., independent of Yi,k, following Bernoulli distribution with P[N 1] = q. Express the following three quantities in = terms of r, p, q, : a) Number of exposures (i.e. number of observations) needed for full credibility (20 points) b) Total number of claims needed for full credibility (5 points) c) Total sum of claim amounts for full credibility (5 points)
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a Number of exposures ie number of observations needed for full credibility Let n be the number o... View full answer
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