Question: Assume that S1 is compound Poisson distributed with parameter 2 =2 and claim sizes p(1) = p(3) = . Let S2 =S1+N, where N

Assume that S is compound Poisson distributed with parameter 1 = 2 and claim sizes p(1) = p(3) = 2. Let S2 = S1+N, where N is

Assume that S1 is compound Poisson distributed with parameter 2 =2 and claim sizes p(1) = p(3) = . Let S2 =S1+N, where N is Poisson(1) distributed and independent of S1. Determine the mgf of S2. What is the corresponding distribution? Determine Pr[S2 < 2.4].

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